Your guide to buying a home.

Transcription

1 Your guide to buying a home.

2 Find your path to the Australian property dream with CommBank. Everyone s property dream is different - whether you re buying your very first home, buying your next property, investing in property or refinancing, our Home Lending Specialists will help you throughout your home buying journey. With practical tips and online tools to make it easier for you to find a home and a loan that will suit your needs and lifestyle. This handy guide explains the process step-by-step from tracking down the perfect property, to choosing a home loan with all the features you need. It s also packed with timesaving tips and ideas to help get you into your dream home sooner. 1

3 Welcome to the home buying journey. Your property dream might not be the same as everyone else s. But the steps you ll take to realise your dream are shared by many Australians. You can see those steps mapped out below and can also read more about them on the following pages. Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Know your starting point. Work out your budget. Enhance your house-hunting. Choose the right loan. Buy your home. Manage your loan. The path you take will depend on your reasons for owning property in the first place. Before you go too far, you re going to want a clear view of your finances. Finding the right property can be challenging, so get to know the real estate landscape with our online tools and resources. Find a flexible home loan that suits your lifestyle, financial goals and budget. If you haven t bought a property before (or even if you have and want a refresher), we have a guide to help you get started. When your circumstances change, it s good to have ways to help you stay on top of your loan - ensuring it s still meeting your needs. 4 Buying your first (or next) home. 5 Buying an investment property. 5 Building a house. 5 Buying and selling. 6 Other opportunities if you already own. 7 Switching your current home loan to us. 7 Renovating your home. 7 What if I m self-employed? 8 Save for a deposit. 9 Work out how much you could borrow. 10 Decide how much you would be comfortable repaying. 12 Work out your upfront costs. 12 Low Deposit Premium and Lenders Mortgage Insurance. 13 Are you eligible for a government grant? 14 Research the market with our Property app. 15 Get a customised property report. 15 Apply for Conditional Pre-Approval. 16 Your appointment checklist. 18 Flexible home loan types. 20 Money-saving options. 21 Wealth Package Savings. 22 Understand your loan. 24 Guide: Your home buying checklist. 26 Stay in control. 26 Manage your loan 24/7 online. 27 Top up your loan. 27 Use the Everyday Offset feature. 27 Redraw money. 27 Repayment holiday. 13 First Home Super Saver Scheme. 13 Guarantor Support. 13 We re here to help. 2 3

4 Step 1 Know your starting point. Whatever property picture you ve painted in your mind, we can help make it a reality. Whether you re purchasing your first home, next home, an investment, building a home, or already own and looking to switch, we ll pair you up with a dedicated Home Lending Specialist to guide you through the whole process and beyond. Plus, give you the tools and information so you always know where you stand. Buying your first (or next) home. Expect to go through a range of emotions during your property search (you are making one of life s big decisions, after all). Whether you re feeling exhilarated and confident, or intimidated and confused we re here to help you navigate your home buying journey. Gain access to: Clear information on exactly how much deposit you ll need An estimate of how much you may be able to borrow Free property reports, to help you better understand the price of your potential home Our CommBank Property app, where you can search for properties, access market price estimates and obtain insights into your favourite suburbs Regular follow-ups from your dedicated Home Lending Specialist to support and guide you along the way Helpful advice on whether you ll need to pay lenders mortgage insurance Competitive quotes on CommInsure building and contents insurance, as well as other insurance products, to protect you in the event something unexpected happens. Buying an investment property. Whether it s your first investment property or sixth, we re here to help you make informed decisions with a wide choice of loan products and different repayment options. We ll help you: Work out your financial goals, as well as calculating a timeframe to achieve them Providing you with free property reports showing recent sales, new listings, estimated prices, trends and more Unlock the equity in your existing property to cover your deposit Better manage your cash flow via flexible repayment options (principal and interest repayments or interest only payments) With strategic investment advice from a Commonwealth Bank Financial Planner Providing competitive quotes on CommInsure insurance products to protect your various assets. Building a house. So you want to build a new home or do major renovations? A construction loan can help ensure you start and stay on the right footing. A construction loan allows you to draw money from the loan progressively as your invoices arrive, so you ll only pay interest on the amount you ve used. We ll also stay in touch with you throughout the build, to see how you re progressing. Buying and selling. Are you planning to sell your property and buy the next one? Or, do you want to buy first then sell your property? Start your journey with us. 4 5

5 Our Home Lending Specialists are here to help you plan your buying and selling journey with different finance options to make it a seamless experience. We ve got the tools and support to get your finances organised and help you sell, find your next home, switch your loan to us, and more. We also offer bridging loans. It helps you with the money to buy a new property before your existing one has sold and settled. For a period of up to 12 months, you make interest only payments on both your existing mortgage and your new home loan. You ll still need to arrange a deposit and cover any additional home buying costs on the new property. You will need to be able to afford to make payments on both loans. Once you sell your current property, the proceeds will pay out your original loan and if possible, go towards reducing the loan on your new property. Other opportunities if you already own. If you already have a property, you may have built up equity the difference between the market value of your property and the amount you still owe on your home loan. You could use this equity to upgrade your home, renovate, buy an investment property or even leverage your equity to buy a car, or travel to the places you ve always wanted to. Switching your current home loan to us. Looking to get more value from your home loan? There s lots of great reasons to switch to us. Look forward to: Different loan and repayment options to suit your needs and objectives A competitive interest rate Our Wealth Package that offers special discounts on eligible home loans and credit cards An Offset account * where money deposited into the account (such as your salary, savings or other income) will offset your loan balance so you pay less interest, whilst still having easy access to your money Access to over 900 branches Our award-winning CommBank app to help you manage your home loan easily A switching process that s smooth, fast and easy. * Fees and charges may apply. Offset only available in conjunction with a Standard Variable Rate Home Loan. Renovating your home. If you re dreaming of home renovations, then topping up or redrawing from your home loan could be an option. You ll avoid the effort and costs of selling your home and buying another one. We can help you start your renovations by showing you how to: Calculate your home s equity and explaining how to use it Top up your existing home loan so you can borrow additional money without needing to take out a separate loan, saving time and paperwork Redraw from your existing home loan (if you ve made additional payments into your home loan, you may be able to use this money). What if I m self-employed? We have Home Lending Specialists who understand the needs and unique circumstances business owners may be facing. Plus, they can help you structure your loan in a way that may let you buy the home you want. 6 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 7

6 Step 2 Work out your budget. Everyone is different, so you need to set a budget that works for you. Once you know the size of your deposit, use our online calculators to work out how much you could borrow, including how much you could comfortably repay, as well as your upfront costs. Save for a deposit. Work out how much you could borrow. The amount you can borrow will depend on: Your income Your other liabilities (loans) Your savings and assets Your bills and living expenses The type of loan you want Work out how much you may be able to borrow. Be as thorough and accurate as you can with your living expenses it s worth the time and means we can give you an accurate estimate. After that, make an appointment with one of our Home Lending Specialists to talk through your options. Use our handy calculator at commbank.com.au/repayments The larger your deposit, the easier your loan repayments will be to manage. Here are some tips to help you save for your deposit: Create a budget and work out where you may need to cut back on your spending Check your credit card(s) and other loan balances. When you pay them off quickly, you can put more money towards your savings Set up a regular savings plan using a high-interest savings account with automatic transfers from your salary To find out more, visit your nearest CommBank branch and talk to us. Visit commbank.com.au/saving for more great savings ideas. 8 9

7 Decide how much you would be comfortable repaying. You can work out what your repayments might be, using our online Home Loan Repayments Calculator at commbank.com.au/repayments. The table below gives you an idea of how much you would have to pay per month over a 30-year term for various owner-occupied loan types and amounts when making principal and interest repayments^. Example of monthly principal and interest repayments: Loan type $300,000 loan 3.89% p.a. Extra Home Loan (2 Year Introductory Rate) (Comparison rate 4.28% p.a.) 3.99% p.a. Extra Home Loan (Comparison rate 4.00% p.a.) $500,000 loan $800,000 loan $1,414 1 $2,356 1 $3,769 1 $1,431 $2,385 $3,815 Calculate your income and expenses to work out how much you can afford to pay off each week, fortnight or month. Visit commbank.com.au/budgetplanner For example: Joanne is looking to purchase a property to live in. Based on her income of $80,000 per year, and monthly living expenses of $2,000 per month, she may be able to borrow up to $436,900. After thinking carefully about her budget, the type of property she would like to buy and future plans, Joanne decides to only borrow $400,000, with repayments of $1,908 per month (based on a 3.99% p.a. Extra Home Loan. Comparison Rate of 4.00% p.a.). This leaves her with more spare cash to pay off her loan faster and save for the future^. ^ 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. Fees and charges are payable and these are not taken into account in the calculations. 1 Example monthly principal and interest repayments shown for Extra Home Loan (2 Year Introductory Rate) are for the first two years based on the introductory rate. At the end of the introductory period a lower discount applies for the remaining life of the loan, which will result in the interest rate and repayments increasing at that time. 10 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 11

8 Work out your upfront costs. In addition to your deposit, there are some other costs you ll need to factor in. You can work out how much you ll need, using our calculator at commbank.com.au/upfrontcosts Don t forget to factor in additional costs like: Stamp duty Bank fees Conveyancing costs Building and pest inspections Other government and legal fees Building and contents insurance Agent s fees, marketing, removalists and repairs (if you re selling your existing home). Low Deposit Premium and Lenders Mortgage Insurance. If you have a deposit of less than 20% of the purchase price of the property, then depending on your situation, you may still be able to borrow but you ll need to pay a Low Deposit Premium or you ll need to take out Lenders Mortgage Insurance. This is a one-off cost (added to the total loan amount) and designed to protect the Bank (not you) against the potential loss we may incur if you are unable to repay your loan. Your Home Lending Specialist will be able to give you more information on whether this applies to you. Are you eligible for a government grant? If you re buying your first home, you may be eligible for a government First Home Owner Grant. Each state and territory has different grants and conditions, however, we can help with your application just visit commbank.com.au/homeloan/fhog First Home Super Saver Scheme. The First Home Super Saver scheme allows you to save money for your first home using your superannuation fund. This scheme helps first home buyers save faster by taking advantage of the concessional tax treatment within super. Refer to the Australian Tax Office for more information. Guarantor Support. Our Guarantor Support option could help you buy your own home sooner by allowing a guarantor, such as a family member, to give extra security for your loan. By mortgaging their own property as security, you may be able to purchase a property with a smaller deposit and potentially avoid paying Lenders Mortgage Insurance # or a Low Deposit Premium #. We re here to help. If you have questions, you can contact us on , 8am to 8pm, visit your local branch, or make an appointment online with one of our Home Lending Specialists. To make an appointment visit commbank.com.au/appointment # The circumstances of your loan determine if Lenders Mortgage Insurance or a Low Deposit Premium may apply. 12 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 13

9 Step 3 Enhance your househunting. A little planning today will save you time and money down the track. Here s a few ways to get on the front foot. Research the market with our Property app. Suburb insights to evaluate an area s short and longterm performance Saving your favourite properties and their inspection dates, and adding them to your phone s calendar so you can plan your viewing days Apply for Conditional Pre-Approval. Search with confidence knowing your loan is conditionally pre-approved. It means that you can search within your price range, and when you find the right property you ll be ready to buy. Suburbs vs CBD? Public transport options? Parks, shops, schools and shopping centres? There are a lot of things you need to factor in when looking for the right property and estimating its value. With some smart tools and market insights, hunting for the right home becomes so much easier. With our free CommBank Property app at your fingertips, you can search for properties, assess what you can afford, and uncover market estimates about a property s potential market price. And when you think you ve found the right property, you can also apply for conditional pre-approval within the app. Power your property search with: Estimated market prices based on multiple data sources to help you assess a property s potential market price even if it s not for sale Easy access to a Home Lending Specialist. For more information visit commbank.com.au/ propertyapp Get a customised property report. Ask your Home Lending Specialist for a personalised report on your preferred suburb or property. With the latest data on new listings, auctions and recent sales, this report offers helpful insights for home buyers when assessing the suitability of a property, location or region. Simply call , drop into your local branch, or make an appointment online. See overleaf for your appointment checklist > Calculators and affordability tools to estimate your repayments, upfront costs and how much you could borrow 14 15

10 Your appointment checklist. Your Home Lending Specialist is there to make your home buying journey easy. You can help speed up the application process by providing documents about: For more details, please visit commbank.com.au/personal/home-loans/what-you-will-need Yourself A photo ID for example, your passport or driver s licence. A non-photo ID for example, a credit card, Medicare card or household bill. Your current home loan (If you are switching to CommBank.) Six months of statements taken within the last 30 days for your home, investment or line of credit loans not held with CommBank. Your earnings: Salary and wages Most recent payslip or a bank statement showing three months of salary credits. Your other debts (Not held with CommBank.) Last three months of statements for any personal loans, credit cards or other fixed repayment loans not held with CommBank. Self-employed Rental income Most recent year s personal and business tax returns, including financial statements Most recent ATO Notice of Assessment. Statement or letter from the managing / real estate agent or a current lease agreement. Other important details An estimate of your monthly living expenses covering for example, food, transport, clothing, utilities, education and health care. No documents required Insurance documents - for example home and contents insurance - not held with CommInsure Contract of Sale (or Offer of Acceptance in WA) if you have found a property to purchase. Government income Bank statement showing three months of payment credits or a letter from Centrelink confirming benefit amounts. Your assets Three months of statements showing savings and/or investments not held with CommBank. 16 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 17

11 18 Step 4 Choose the right loan. There are a number of different loan types we can help you choose one that suits your needs, your goals and has the right amount of flexible features. Flexible home loan types. Variable, fixed or split? Variable Rate. You can make unlimited additional repayments to pay off your loan sooner, redraw additional repayments and split your loan. Depositing money into an offset account will also help you save on interest and gives you easy access to your money. Your repayments will change if the variable interest rate goes up or down. Fixed Rate. Avoid changes to your repayments by locking in an interest rate from 1 to 5 years, so you can plan ahead with certainty. You can make additional repayments of up to $10,000 per year on your fixed rate loan without incurring an Administrative fee or an Early Repayment Adjustment. Split Loan. Split your loan into Fixed and Variable portions to combine the certainty of a fixed rate with the flexibility of a variable rate. Principal and Interest or Interest Only? Principal and Interest. Pay off your loan by repaying some of the loan balance with every repayment. One of the benefits of selecting a principal and interest home loan from the beginning of the loan term is that your total repayments will be lower over the life of the loan, since each time you pay the minimum repayment you re paying part of the principal loan amount while also covering the interest. Interest Only. Pay just the interest owed on your loan for a limited period. Once your interest only period ends, your repayments will change to principal and interest, which will increase your repayments. With interest only, although your payments are lower, you aren t paying off the loan balance itself (the principal). On top of that, the interest rate on an interest only loan is typically higher than a principal and interest loan. Plus, an interest only period isn t forever (there is a maximum interest only period for your home loan), as it s designed for short-term needs. In this example: Jo has taken out a home loan of $500,000 for 30 years 2. Monthly amount $2,637 $2,385 $1,921 5 years interest only 30 years Principal and interest 25 years Principal and interest Year If she decides to make interest only payments: For the first 5 years of her loan at 4.61% p.a (Comparison rate^ of 4.25% p.a), her monthly payments would be approximately $1,921 In year 6 her payments would revert to principal and interest at 3.99% p.a (Comparison rate of 4.00% p.a). Her monthly repayments would then increase to $2,637 Total Loan repayments: $906,178 If she was to make principal and interest repayments at 3.99% p.a (Comparison rate of 4.00% p.a) from year 1 her monthly repayments would be $2,385 Total loan repayments: $858,311 This means that over the life of her loan, Jo will pay an additional $47,867 interest - for the first 5 years of being on Interest Only. 2. 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. 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). 19

12 Introductory rate. Choose an Extra Home Loan (2 Year Introductory Rate) and enjoy a discounted interest rate which will keep your repayments lower while you settle in. At the end of the introductory period, a lower discount applies for the remaining life of the loan, which will result in the interest rate and your repayments increasing at that time. Choose your repayment frequency. Depending on your needs, you can choose to make weekly, fortnightly or monthly repayments. Talk to your Home Lending Specialist to understand your options and set a repayment frequency that suits you. You can also manage your repayments on NetBank or the CommBank app any time. Money-saving options. Offset Account. Linking an Everyday Offset 3 account to your Standard Variable Rate home loan is a great way to pay less interest. Any money deposited into your offset account (such as your salary or savings), reduces the amount of interest you pay on your home loan whilst still giving you easy access to your money. An Everyday Offset account allows you to offset 100% of your account balance against a Standard Variable Rate home loan. You can have an unlimited number of Everyday Offset accounts in the same name linked to your home loan to help you manage your money as you like saving even more interest over time. Wealth Package. Simplify your banking and save money at the same time with our Wealth Package. You ll enjoy special discounts on home loans and credit cards for an annual fee of $395. To find out more, visit commbank.com.au/wealthpackage Wealth Package Savings. How much could you save? For example, let s imagine you have a Standard Variable Rate home loan for $300,000, and a Platinum Awards credit card. How much could you save when you apply for a Wealth Package for an annual fee of $395? Product Benefit First year Second year (and for the life of your loan) 4 Home Loan Credit Card (Platinum Awards) 0.5% p.a. discount No establishment fee No monthly Loan Service Fee No annual fee Less the annual package fee $1,104 $600 $96 $249 $395 Total savings in the first year = $1,654 ($2,049 - $395 fee) $1,104 N/A $96 $249 $395 Total Home Loan Wealth Package Saving $1,654 $1, Everyday Offset is a feature of eligible transaction accounts. Fees and charges may apply. 4. The establishment fee will no longer be applicable after the first year. As the balance of the loan decreases, the interest savings will also decrease. Fees and discounts accurate at time of print. 20 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 21

13 Understand your loan. Choose from a wide range of loans packed with flexible features. Products Features Standard Variable Rate Fixed Rate Extra Home Loan Extra Home Loan (2 Year Introductory Rate) Viridian Line of Credit Why choose this loan? Our fully featured, flexible loan with a competitive rate. Lock in a rate for 1-5 years. A low rate for the life of your loan. A lower interest rate for an introductory period changing to a higher ongoing rate after this. Access to credit when you need it, with no set term or repayments. Savings No establishment fee Discounted interest rate Save interest with Everyday Offset Eligible for Wealth Package Credit card annual fee waiver To pay my loan faster Make additional repayments Unlimited Up to $10,000 per fixed term year 8 Unlimited Unlimited Unlimited Flexibility Redraw additional payments or take a repayment holiday Split your loan (part fixed, part variable) With a Wealth Package. 6. Extra Home Loan provides a discounted interest rate for the life of the loan. The Extra Home Loan (2 Year Introductory Rate) provides a higher discount during the introductory period. At the end of the introductory period, a lower discount applies for the remaining life of the loan, which will result in the interest rate and repayments increasing at that time. 7. An Early Repayment Adjustment and an Administrative fee may apply if you split your loan during a fixed term period. 8. An Early Repayment Adjustment and an Administrative fee may apply if you pay more than the maximum. 9. Loan splitting is not available for Extra Home Loans during the introductory period. 22 Step 1 > Step 2 > Step 3 > Step 4 > Step 5 > Step 6 23

14 Step 5 Buy your home. Guide: Your home buying checklist. Complete your application. Have the property inspected. Negotiate the price. Exchange contracts and pay a deposit. Proceed with financing. Take out insurance. Settle the property. You ve found your dream home and you re ready to buy. So what comes next? Make an appointment with a Home Lending Specialist at commbank.com.au/appointment, visit any of our branches or call us on , 8am to 8pm, 7 days Your Home Lending Specialist will ask you to provide some documents to start or complete your loan application. It s a great idea to arrange a property and pest inspection before you exchange contracts Check with your local and state governments about zoning issues and future developments that may affect your home. Your solicitor or conveyancer can help with this. For a private treaty sale, the seller will set an asking price or price guide and you can make a conditional offer subject to finance approval If you buy at auction, there s no negotiation the winning bid is the price paid for the property. Conveyancing is the process of transferring a property from the seller to the buyer Arrange for your solicitor or conveyancer to review the contract of sale before you exchange contracts You will need to pay a deposit when you exchange contracts. Your Home Lending Specialist will let you know when your home loan documents are ready for review and will guide you through the details You will need to sign the loan documents. You re required to take out home insurance before you settle We can help, with Home Insurance options from CommInsure to protect your building and contents CommInsure Loan Protection Insurance can help you and your family take care of loan payments if you can t work due to illness, injury or if you lose your job Speak to your Home Lending Specialist to obtain a quote and take out insurance For a quote, visit commbank.com.au/insurance, visit one of our branches or call Settlement is when the purchase of a property is completed and you take possession of the property We will notify you by SMS as soon as settlement is complete You can pick up your keys from the seller s real estate agent Upon settlement, your Home Lending Specialist will call to congratulate you, confirm your repayment schedule and answer any additional questions you may have

15 Step 6 Manage your loan. Managing your CommBank home loan is easy, with these flexible options and time-saving tools. Stay in control. Download the award-winning CommBank app to manage your home loan on the go Ask your Home Lending Specialist to register you for NetBank, Australia s number one online banking service, to track your loan, receive statements online, change your repayments or loan type, make additional repayments or redraw money (depending on your loan type) Top up your loan. If you re planning renovations, a holiday or looking to invest, borrowing extra money on your home loan could be a good solution and you won t need to take out a separate loan. You can simply apply online or book an appointment with one of our Home Lending Specialists. If you increase your loan, it will increase the amount of interest charged and will generally increase your loan repayments. Use the Everyday Offset feature. Redraw money. If you ve made additional repayments and you re ahead on your loan, you may be able to access your available redraw, which is based on the time you ll take to pay the loan back and the loan amount. So in a given month, once you have met the monthly required repayment, any additional repayments you make will contribute to available redraw. The available redraw can reduce over time if you choose to reduce your repayments. This is so by the end of your agreed loan term, both your loan balance and the available redraw will be zero. You can also manage your loan by calling us on , 8am to 8pm, 7 days or visiting your nearest branch. Manage your loan 24/7 online. You can manage your home loan anywhere and at any time on the CommBank app or NetBank: Any money deposited into an Everyday Offset account, such as your salary, savings or other income may offset the loan balance, so you pay less interest, whilst still having easy access to your money. Repayment holiday. If you re ahead with your loan repayments, you may be able to enjoy a repayment holiday. Shape your loan to suit changes to your lifestyle by putting repayments on hold for up to 12 months, depending on your loan type. Change your repayments and repayment type Switch to a Fixed Rate loan or refix an existing Fixed Rate loan at maturity 26 Access your home loan statements online Fees and charges may apply. 27

16 Why partner with CommBank? CommBank offers smart tools, exclusive property insights and flexible loans to support you throughout your home buying journey. Value Tailored rates. Get an interest rate tailored for you giving you the best deal for your situation. Special discounts Enjoy special discounts on your home loan and credit card with a Home Loan Wealth Package 10. Flexible loan features 11 Be ready for whatever life brings, with product features like interest offset, redraw, flexible repayments and repayment holidays. Guidance Smart tools. Explore the market with the CommBank Property app, or go online to use our handy calculators. Market news and insights. Get free, individually customised property reports for your target property or suburb. Expert lending support. Make confident decisions, with specialists who partner with you at every step of your home buying journey. Convenience Anywhere, anytime convenience. Manage your home loan and banking 24/7 with our awardwinning CommBank app, NetBank or over the phone. Experts who come to you. Make an appointment to meet a mobile lender at a time and place that suits you. All your banking in one place. Simplify your finances by bringing your loan, insurances and other banking together in NetBank and the CommBank app. Things you should know: ^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. Fees and charges are payable and these are not taken into account in the calculations. Applications for finance are subject to approval. Full terms and conditions will be included in the Bank s loan offer. Bank fees and charges apply. The advice in this brochure has been prepared without taking your individual objectives, financial situation or needs into account. Before acting on this advice, you should consider whether it is appropriate to your circumstances. Home Insurance is issued by Commonwealth Insurance Limited ABN AFSL (CIL). Loan Protection is issued by The Colonial Mutual Life Assurance Society Limited ABN AFSL (CMLA). Commonwealth Financial Planners are Representatives of Commonwealth Financial Planning Limited ABN AFSL CIL, CMLA and Commonwealth Financial Planning Limited are wholly owned but non-guaranteed subsidiaries of the Commonwealth Bank of Australia. CommInsure is a registered business name of CIL and CMLA. Terms and conditions of Everyday Offset account (feature of an eligible transaction account) and NetBank and a Product Disclosure Statement (PDS) for Home Insurance and Loan Protection are available by visiting our website commbank.com.au, calling ( for Home Insurance or for Loan Protection) or at any branch and should be considered in making any decision about these products. We do not pay our staff commissions for supplying products to you. We pay them a salary and, in some cases, performance bonuses. Our staff may also receive payments for business they refer to other persons in the Bank who specialise in certain products and/or services and may be eligible for prizes including overseas travel and gift vouchers. Our staff may also receive benefits such as tickets to sporting and cultural events, corporate promotional merchandise or other similar benefits from product providers whose products they may sell or for business they may refer to product providers. We receive commission for selling CommInsure Home Insurance and Loan Protection Insurance. The commission amount ranges up to 20% of every annual premium amount For Wealth Packages applied for on or after Monday 3 April 2017, you must have (or be applying for) an eligible home loan or Viridian Line of Credit with a package lending balance of at least $150,000 when you apply that will participate in the package. Annual package fee (currently $395) applies. Contact us for information about packages applied for or requested before Monday 3 April Features available on eligible loan types. If you have a complaint, you can access our dispute resolution process by calling (call charges may apply). Commonwealth Bank of Australia ABN AFSL and Australian credit licence Registered office: Ground Floor, Tower 1, 201 Sussex Street, Sydney, NSW 2000.

17 We re here to help. If you have questions: Visit: commbank.com.au/homeloans Make an appointment at: commbank.com.au/appointment Drop in to any of our branches and visit a Home Lending Specialist. Call us on , 8am to 8pm, 7 days. Or locate a mobile lender who can come to you: commbank.com.au/mobile-lender ADV ( )