How To Kill Commonwealth Bank Exit Fees

“No Fee” really does seem to mean, no fees

A very quick post for any and all that are currently with the Commonwealth Bank (with loans that started before 1st July 2011) and wanting to change banks. If you’re not with them (or are and don’t want to change) then you can stop reading this now and move along.

If you take out a new mortgage now or took yours out after July 1 2011, then you should by law have no exit fees. Currently though, there are a myriad of fees that you might have to pay to move your pre 1st of July 2011 mortgage from one bank to another (some of the main ones are listed below), however through some deep investigations I’ve learnt of a quick little trick you can do to get rid of at least some of the fees Commonwealth Bank charges its customers when they switch. As of writing this, the Commonwealth currently has a recently updated loan type called a “No Fee Variable Rate Home Loan”. You can get more information on it here but the main point about it obviously, is that it has no fees. As it has no fees, there’s no Settlement Fee or Discharge Of Mortgage Fee, two things that are commonly on other types of Commonwealth Home Loans entered into to before the “no exit fee’s law” came into act last year. As it is also just another product type to Commonwealth, it’s free to switch your home loan over to it making this little trick very simple.



If you want to change banks but the Commonwealth Bank is going to charge you exit fees, simply switch to the “No Fee Variable Rate Home Loan” first… wait a day or two and then switch banks! As you’re now on the “No Fee” home loan those existing exit fees you would have had to pay will no longer exist! Instant savings! Depending on what exit fees your loan has on it, this could save you anywhere from $350 up and all it takes is a phone call to 13 22 24 and a few minutes of your time.

An Example Of Charges When Switching Banks

Who Charges The Fee:Fee Name:Amount:
New Bank:Security Admin Fee:$195.00
New Bank:Establishment Fee:$600.00
New Bank:House Valuation Fee:$200.00
Land Titles Office (Government):Discharge Of Mortgage Fee:$105.00
Land Titles Office (Government):New Mortgage Fee:$105.00
Commonwealth Bank:Deferred Establishment Fee:$175.00
Commonwealth Bank:Settlement Fee:$350.00

As you can see, the ones highlighted in bold can be set to $0 using this neat little trick. If you have more exit fees, there’s also a good chance that they will get waived too if they’re on the list mentioned in the quick Facts Sheet. That said though, this No Fee Variable Rate Home Loan is currently carrying a 5.90% interest rate which is quite highly competitive given there are no other fees, setup costs, annual charges, account fees and so on. It also allows unlimited extra payments so you can mutilate your mortgage and also has free Redraw facilities so there’s no need for an Offset Account.

Note: I’d also like to just note I am not affiliated with Commonwealth Bank in any way aside from using their services.

 

How To Kill Commonwealth Bank Exit Fees is a post from: www.MutilateTheMortgage.com



Got a mortgage? Learn how to kick it's ass fast!
You can pay off your mortgage early. So early that you can be mortgage free before you even have kids, before you hit 30 and you can do it without cutting back on the things you love too.




Alex Shoolman

How To Pay Off A Mortgage Early - What if you could be mortgage free in under 10 years, automatically and without cutting back on the things you love?
Editor in Chief at Alex Shoolman - Learn how to improve your life with technology, see where it's going in the future and how you can take advantage of it.
Editor in Chief at Mutilate The Mortgage - We help people go from "no idea" to mortgage free in under 10 years.

Related Posts

Mutilate The Mortgage With...

One Of The Best Things We’ve Ever Done

Over a year ago my wife and I went into the city for a very special appointment. It wasn’t a dinner date or to go see a movie, no it was far more unique and Read more…

Mutilate The Mortgage With...

Success By A Thousand Improvements

Currently you might have a mortgage of say, $250,000. This mortgage, assuming you’ve done your homework and negotiated down to a good rate might be at something like 3.64%. That’s bonkers low as we’ve previously discussed Read more…

FHB Tips

The Ultimate Guide To Paying Off Your $400K Mortgage

This post is part of the fantastic “Ultimate Guide” series which aims to help any person, with any income andany number of children to easily see what type of time frames they should be aiming for regarding Read more…