Enter your income and expenses to estimate how much you may be able to borrow for a home loan. Calculate Here. This article covers Commbank Borrowing Power.
The Commonwealth Bank of Australia, or CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom. Below are all findings of Commbank.
Things you should know about Commbank Borrowing Power
Calculations are estimates provided as a guide only. They assume interest rates don’t change over the life of the loan and are calculated on the rate that applies for the initial period of the loan e.g. for fixed-rate options, the repayments are for the initial fixed-rate period only.
Weekly/fortnightly amounts only apply if you’re paying by Direct Debit (set up with CommBank). For all other payment methods, you’ll need to pay the monthly amount.
We have different rates that apply, depending on whether you are making interest-only payments or principal and interest repayments. During an interest-only period, your interest-only payments won’t reduce your loan balance. At the end of an interest-only period, your repayments will increase to cover principal and interest components.
Interest rates referenced are current rates and may change at any time.
Fees and charges are payable. The calculations do not take into account fees, charges or other amounts that may be charged to your loan (such as establishment or monthly service fees or stamp duty). Lenders’ Mortgage Insurance or a Low Deposit Premium may apply to your loan depending on the size of your deposit; security, applicant and loan attributes. This is a one-off cost and will be added to the loan amount. Any of these additional amounts will increase repayments under the loan.
Calculations are not a loan approval. Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Conditions apply to all loan options. Full terms and conditions will be set out in our loan offer, if an offer is made.
For investment loans, negative gearing may be applied in determining your borrowing capacity. Availability will depend on our credit policy, your security and loan attributes and other information that you provide. You should seek independent, professional tax advice before making any decision based on this information.
*To apply for a Wealth Package, you must have an eligible home loan or line of credit with an initial package lending balance of at least $150,000 at the time of your application. Eligible home loans include: Standard Variable Rate home loan, Fixed Rate home loans and Viridian Line of Credit. A non-refundable annual fee of $395 is payable in advance. The package can be established in the name of one or two individual’s name/s, or in the name of a corporate entity. It cannot be established in the name of a business or family investment trust. Customers with Low Documentation loans are not eligible to apply for Wealth Package.
**Comparison Rate
Comparison rate calculated on a $150,000 secured loan over a 25 year term.
WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates for variable Interest Only loans are based on an initial 5 year Interest Only period. Comparison rates for fixed or guaranteed Interest Only loans are based on an initial Interest Only period equal in length to the fixed or guaranteed period. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
How much can you borrow for your home loan?
Finding out exactly how much you’ll be able to borrow for your home loan is an important first step in beginning your search for a property. There are a number of factors that will determine whether what you want to borrow correlates with what a lender is willing to loan you.
How do lenders determine how much they’ll loan you?
Lenders take a range of factors into account when deciding how much home loan applicants can borrow. These typically include:
- your annual income, including your salary and any income you earn from investments such as shares or term deposits
- your regular ongoing living expenses, including rent
- your dependants (children under 18 and/or any other people who are financially reliant on you)
- any personal debt you have, such as credit cards, store cards, personal loans or home loans
- whether you plan to live in the property as an owner-occupier or rent it out as an investment property
- the suburb in which you plan to buy property
- whether you’re planning to use a First Home Owners Grant to supplement your deposit
- the number of borrowers (whether it’s just yourself or there are two of you)
- how much deposit you’ve saved and the value of the property you are looking to purchase. This will determine the loan-to-value ratio (LVR) and whether or not you’re charged lender’s mortgage insurance (LMI) or a low deposit premium on your home loan.
Home loan calculator
You can use our home loan calculator to work out how much you might be able to borrow from the Commonwealth Bank. This calculator can also help you work out what your home loan repayments will be based on your likely borrowing amount.
Here ends Commbank Borrowing Power article.