Commonwealth Bank variable mortgage rate

Check back weekly or bookmark this page to monitor the Commonwealth Bank variable mortgage rate. The table below is current as of [date]. Rates are subject to change.

Commonwealth Bank variable mortgage rate products: 

Commonwealth Bank variable mortgage rate FAQs

How to decide between a CommBank interest rate that is fixed or variable

Commonwealth Bank variable mortgage rate offers flexibility and various features, ideal for borrowers seeking adaptable financing options. Its fixed rate has its own benefits as well, including predictability. Here are key factors to consider: 

Advantages of a fixed rate home loan 

• certainty: lock in your interest rate for 1 to 5 years, ensuring consistent repayments 
• budgeting: easier to plan for future financial goals without surprises 
• protection: shield yourself from potential interest rate rises 

Disadvantages of a fixed rate home loan 

• flexibility: limited additional repayments (up to $10,000 per annum) without penalties 
• redraw restrictions: no access to extra repayments during the fixed term 
• early repayment: potential adjustments if you pay off the loan early 
• missed opportunities: won’t benefit from interest rate decreases 
• no offset account: can’t link to an Everyday Offset account 

Advantages of a variable rate home loan 

• flexibility: unlimited repayments and redraws on additional repayments 
• offset account: link to an Everyday Offset account to reduce interest charges 
• falling rates: Commonwealth Bank variable mortgage rate benefits from lower rates and potentially faster loan payoff 

Disadvantages of a variable rate home loan 

• uncertainty: interest rates can rise, increasing your repayments 
• budgeting: harder to predict future payments due to rate fluctuations 

Considerations for decision making 

• stability vs. flexibility: if you value consistent payments and protection from rate hikes, a fixed rate may suit you. If you prefer flexibility and potential savings from rate drops, consider a variable rate 
• financial goals: align your choice with your short and long-term financial goals 
• market trends: be aware of economic conditions that may affect interest rates 

Selecting the Commonwealth Bank variable mortgage rate can be a good move due to its adaptability and potential cost savings. But if you prefer a steady and foreseeable repayment plan, a fixed rate might be more suitable.

What's the main risk in taking out a variable rate home loan?

The uncertainty caused by fluctuating interest rates is the main risk in taking out a variable rate home loan. Key points to consider: 

Variability of interest rates 

• variable rates change: rates can go up or down based on market conditions, economic factors, or Reserve Bank of Australia (RBA) cash rate 
• unpredictable repayments: monthly payments can vary, making long-term budgeting challenging 
• potentially higher costs: if the RBA raises rates, your repayments and mortgage rate might increase 

Budget management challenges 

• difficulty in budgeting: fluctuating rates can create pressure on your household budget 
• increased financial strain: higher rates mean higher monthly repayments, which can lead to financial stress 

Additional considerations 

• rate changes are inevitable: over a 20- to 30-year loan, expect several changes in interest rates 
• fixed-rate comparison: fixed-rate loans protect against rate changes for a set period; after that, rates may rise 
• risk mitigation: keep mortgage repayments below 30% of your income to buffer against potential rate increases 

The Commonwealth Bank variable mortgage rate allows for adaptable payments but also brings the challenge of variable interest rates. To navigate this, maintain a strong financial plan and stay informed about economic conditions.

Difference between fixed and variable rate mortgages

Each option has distinct features and benefits. Fixed rates provide consistent payments and financial stability, while variable rates offer adaptability and the possibility of lower costs. 

Fixed rate mortgages 

• interest rate stability: the rate remains constant for a set term (usually 1 to 5 years) 
• predictable repayments: payments are consistent, aiding budgeting 
• no benefit from rate drops: if interest rates fall, your rate stays the same 
• limited extra payments: restrictions on additional repayments 
• early payout penalties: fees for paying off the loan early 

Variable rate mortgages 

• fluctuating rates: interest rates change with the economic climate and RBA’s cash rate 
• potential for lower payments: payments decrease if rates fall 
• uncapped extra repayments: you can make additional payments without restrictions 
• redraw and offset accounts: access to features that can reduce interest costs 
• risk of rate increases: payments rise if interest rates go up 

Key differences 

• budgeting: fixed rates simplify budgeting; variable rates require monitoring 
• predictability vs flexibility: fixed rates offer stability; variable rates offer potential savings but come with risks 
• penalties and fees: fixed rates can have early payout fees; variable rates generally do not 

When choosing between Commonwealth Bank variable mortgage rate and fixed rate, contact CommBank or a mortgage adviser. Remember your financial goals, risk tolerance, and market predictions. 

Features and benefits of Commonwealth Bank variable mortgage rate

Commonwealth Bank’s variable mortgage rate offers a range of benefits and features that customers are entitled to have. These include: 

• wealth package: additional interest rate discounts and fee waivers on eligible home loans 
• interest offset: save on interest while accessing funds using an Everyday Offset account 
• complete flexibility: split loans, make unlimited additional repayments and redraws, or go for interest only payments 
• top-ups: increase existing home loans by $10,000 or more to access additional funds 
• exclusive offers: $500 off conveyancing, CommBank Yello benefits, and more 

Big 4 effect 

The top four ranking banks in Australia are called the Big 4, which CommBank is a part of. When considering variable home loan rates, Big 4 banks usually offer more features to make up for their less competitive rates. 

Trade offs 

Commonwealth Bank home loan interest rates are not protected from rising interest rates, which are influenced by market conditions, RBA’s cash rate, and more. 

Additional offers, rewards, and tools 

• shopping offers: exclusive deals via the CommBank app 
• home offers: deals on NBN and electricity plans 
• finance offers: support and protection for managing your credit score 
• business partnerships: offers to help run your business efficiently 
• tools and support: Commonwealth Bank variable mortgage rate calculator and guide 

This type of rate provides various benefits and tools, designed to match the client’s financial needs. This makes it a compelling option for many borrowers.