As of Friday, May 29 CommBank has made the below changes to their Home Loan Switching Terms & Conditions.
Temporary one-year Interest Only (IO) & Interest In Advance (IIA) to support customers due to the broader impacts of Coronavirus.
CommBank is temporarily allowing existing customers to apply for a one-year IO and IIA switch/ extension without requiring a serviceability assessment, when:
- They are not in arrears
- They are not in financial hardship
- They are not participating in the Home Loan six-month repayments deferral
- There will be a minimum of 1 year remaining on the contracted loan term at the expiry of the proposed IO term
- The loan account has been funded for a minimum of 180 days.
Commonwealth is additionally taking the following extra measures in order to support this temporary change.
- Provide a new process including the requirement to ask mandatory responsible lending questions outlined in CommBroker
- Update the Loan switching request form 001-070 to include a new IO repayment amount section and declaration statements
- Update NetBank to allow either to operate customers to switch from Principal & Interest for one-year IO switch requests.
- Change the customer's interest rate to the applicable higher rate of interest during the interest-only period
- Review the change periodically.
As your customer's broker, you will have 3 options available to support them:
- NetBank One-year IO Switch/Extension Requests
- Interest Only Switching Team - 1300 057 072 (8 am - 6 pm M to F AEST)
- Loan Switch Request Form.
Customers participating in the Home Loan six-month repayments deferral
Customers participating in the Home Loan six-month repayments deferral who are no longer in financial hardship are eligible to apply for a one-year IO and IIA switch/ extension. They must:
- Call Financial Assistance Solutions, 1300 720 814, to cancel their deferral
- Once the deferral is cancelled, they will then be eligible to switch to one-year IO/ IIA.
For any customers requesting an IO or IIA switch/extension for more than one-year, follow the standard process.