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General Questions
Applying for a HomePath Loan
Servicing your Loan
Fees and Charges
General Questions
1. Who is HomePath?
HomePath Pty Limited is a wholly owned but not guaranteed subsidiary of the Commonwealth Bank. It is therefore a separate legal entity that is able to offer products and services in its own right. A HomePath home loan is not a Commonwealth Bank loan. HomePath is designed for customers who would like to apply for and manage their loan over the Internet, with the support of a phone help desk if needed.
2. What does myHomePath offer?
myHomePath is your secured member’s area. Here you can view your saved or previously submitted applications. It also includes myMessages where you can send and receive messages to and from the HomePath team. You can also use the online forms to send through a Servicing and Switching request – all in a secured environment.
3. Can I speak to someone if I need help?
If you cannot find the information you are looking for, or you have a question that is specific to your own situation, simply email us or call HomePath on 1300 130 852 (if calling from outside Australia +61 1300 130 852 - international call rates apply) from 8am to 10pm (Melbourne time), 7 days a week.
4. How do I make a complaint?
We recognise that even in the best run organisations things can go wrong. Should you have a complaint, please tell us because it gives us the opportunity to fix the problem. We will investigate the complaint, answer your questions and do all we can to regain your confidence.
To assist us in helping you, we ask you to follow a simple three-step process.
1. Gather all supporting documents about the matter of complaint, think about the questions you want answered and decide what you want us to do.
2. Contact us, and we will review and if possible resolve your issue straight away. A quick chat is all that's required to resolve most issues.
You may contact us by:
3. If at this stage the matter has not been resolved to your satisfaction, please contact our Customer Relations team using the above contact points. We will provide you with the name and contact details of the officer who will investigate your complaint, answer your questions and do all they can to regain your confidence.
Alternatively, you may contact Customer Relations by writing to:
Customer Relations
HomePath Pty Ltd
Reply Paid 41
Sydney NSW 2001
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Applying for a HomePath Home Loan
1. Does HomePath have split rate, fixed rate or line of credit loans?
HomePath offers Standard Variable Rate, Fixed Rate (selected terms only) and split rate (called Fixed and Variable Rate) loans.
HomePath does not offer line of credit loans.
2. How many people can apply for a HomePath loan?
Up to two applicants can apply for a loan.
3. How many properties can I offer as security for a HomePath loan?
Up to two properties can be offered as security.
4. What’s pre-approval?
Pre-approval generally means gaining an estimate from the lender of how much you may be able to borrow, based on your financial circumstances. HomePath takes this one step further by providing you with a "Confirmation of Eligibility" that’s likely to be far more accurate, because we take into account your specific requirements.
5. Why should I get pre-approval for a loan?
If you want to buy a property, it makes sense to find out how much you can borrow. If you apply for a loan and obtain "pre-approval", you will:
- know how much you can afford
- strengthen your position as a buyer
- have a basis to compare different loans and make the best choice for you. And that can mean tremendous savings over the life of the loan
It also makes sense to secure a lender's commitment as soon as you know that you want to buy – especially in a hot market, when property is selling fast.
6. How do I apply for a loan?
Applying for a loan couldn't be easier. You can apply now by simply completing the seven step online application form. Just enter your details and submit.
7. What financial details do I need to provide when applying for a HomePath Home Loan?
Depending on your circumstances you will need to provide the following information:
- details of your income
- details of your bank accounts
- details of your assets including shares, life insurance policies, motor vehicles and personal effects
- details of your liabilities including other loans, credit cards and store cards.
If you are self-employed you will need to provide up to date financial statements or income tax returns for the last 2 years.
Note: The above documentation may be provided by e-mail. Please note that any e-mail may pass through non-secure channels and could therefore be viewed by an unauthorised third party. By sending documentation by e-mail, you acknowledge the risks inherent in this means of communication.
Full details will be provided with our "Confirmation of Eligibility".
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8. What other information will HomePath require?
As well as financial details, you may need to provide the following:
- Your current employer's details (address and phone number)
- If you have been in your current job for less than 2 years then please provide details of your previous employment
- Proof of identity
- Certificates of Title details
- Contracts for Sale
- Full Rates Notices
Full details will be provided with our "Confirmation of Eligibility".
9. I am self-employed, but my tax returns or financial statements are not available. Can I apply for a HomePath loan?
No, you will need to be able to provide up to date financial statements or income tax returns for the last 2 years.
10. What is Lenders’ Mortgage Insurance?
If you borrow more than 80% of the security property’s value you will need to pay Mortgage Insurance. This insures the lender against any loss incurred in the event the security property is sold for less than the balance of the loan. However, the borrower still remains legally responsible for repaying the shortfall.
The insurance premium is paid by the borrower at settlement or funding, from the loan account.
11. What deposit do I need?
You may borrow up to 97% of the property’s value for either an owner occupied or investment loan (some conditions and exclusions apply).
12. Are there any purposes that HomePath will not lend money for?
A HomePath loan cannot be used for construction purposes, or to purchase serviced/managed apartments, vacant land or rural properties greater than 50 hectares, or 10 hectares when Lenders’ Mortgage Insurance is involved. Please refer to Who can apply? for a complete list.
13. Can I apply for a home loan if I am not an Australian resident?
No. You must be an Australian permanent resident to apply.
14. Am I eligible for a loan if I am not working?
You may be eligible for a loan regardless of employment status. We will make a decision based on your individual circumstances.
15. How long does it take from application to settlement (or funding)?
Once your application and all the necessary information has been received by HomePath you should receive conditional loan approval, or a request for further information, within 24 hours. If the loan is conditionally approved, you will then be sent the Loan Offer, which includes the mortgage documents.
After you sign and return these documents, together with your original documentation supporting your financial details, and providing there is nothing else outstanding, we will email you a formal decision. If there are details outstanding, we will notify you of this.
Once your loan is formally approved, HomePath will then arrange for settlement or funding of your loan.
Read more about the Loan Process, and how long each step generally takes.
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16. What is the First Home Owner’s Scheme Grant?
Eligible first home buyers can receive non-means tested government assistance of $7,000. The scheme is administered by the States and Territories. It covers only the purchase of your first home in Australia. If you are married or living in a de facto relationship, you must make a joint application for the grant with your spouse or de facto. Neither of you can have owned a home previously, whether individually, or with any other person. You will be eligible to apply if you:
- are buying your first home
- are an Australian citizen or permanent resident
- intend to make the home your principal residence, and
- start living in the home within a reasonable time. The payment will be the same regardless of your income.
Visit the First Home Owner’s Scheme web site for more details or to download an application form.
17. Can we receive correspondence in both our names?
It is a requirement of the Consumer Credit Code (CCC) that every party to a loan receives individual copies of the loan documents, notices, etc. However, where joint borrowers all live at the same address the CCC allows parties to nominate one of them to receive notices and other documents on behalf of the other party. To establish a nomination, complete section B of the 'Contract Authority and Nomination to Receive Notices' form and return it to HomePath. When the Nomination has been established, all documents, statements and notices will be addressed to the nominated borrower only.
Servicing Your Loan
1. How do I repay my loan?
Repayments can be made electronically by direct debit from your bank account or by salary crediting. Where an interest only payment option is selected payments must be made by direct debit.
2. Can I make extra repayments, and if so, how?
Yes, you can make extra repayments by either increasing your direct debit repayment amount (the amount you are paying from an account) or salary credit repayment amount, or by using BPAY®. If your loan is a Fixed Rate loan any extra repayments in excess of $10,000 per annum will incur an interest adjustment.
3. Can I alter my repayments?
You can alter your repayments by changing your direct debit or salary credit amount, subject to the Required Monthly Repayment Amount (RMRA) being met.
To change your direct debit amount complete a Service Request in myHomePath.
To change your salary credit amount request your employer to amend the repayment amount that is forwarded to HomePath.
4. Can I pay weekly, fortnightly or monthly?
Yes. Except for where you have chosen an interest only payment option, you may make your repayments weekly, fortnightly or monthly.
Interest only payments must be made monthly via direct debit from a related account.
5. Does HomePath have Repayment Redraw?
Yes. Repayment Redraw is available on Standard Variable Rate loans. A minimum redraw amount of $2,000 applies.
6. What is an interest only loan?
An interest only loan allows you to pay only the interest on the loan, rather than paying both principal and interest. This payment option may be useful for property investors because it maximises the investor’s tax deductions. This option may also have the added benefit of freeing up cash flow for alternative investments.
You can choose to have an interest only option for a maximum period of five years on both Home and Investment Home Loans.
7. Will I be able to split my current HomePath loan?
Yes. You may apply to switch your loan to a Fixed and Variable Rate loan. For full details refer to Switching. Fees and conditions apply.
8. Can I switch between a fixed rate and a variable rate?
Yes. You can change from a fixed rate to a variable rate, or vice versa, at any time. However, a switching fee applies, and, if you switch from a fixed interest rate loan, an interest adjustment also applies. Conditions apply.
At the end of a fixed rate period your loan will automatically move to the variable rate (at no cost), or you can switch to another set period (in which case a switching fee applies).
9. Can I switch my current HomePath loan from a variable to a fixed rate?
Yes. You can switch to a Fixed Rate loan at any time. A switching fee is applicable and conditions apply.
10. What will happen at the end of the fixed rate period?
You will receive notification in writing 30 days prior to your fixed rate expiring. You will be given the option of rolling over your existing loan to a new fixed rate. A switching fee is applicable and conditions apply. If you do not make any changes, the loan will automatically convert to the standard variable rate at no cost.
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11. Can I top up my loans?
Yes, HomePath allows you to add other purchases to your existing loan. A Top-Up is useful for things such as a new car, renovations, children’s education or a holiday, all at home loan interest rates. The minimum Top-Up amount is $10,000. To apply for a Top-Up loan you will need to complete a new loan application noting your existing HomePath loan number. Go to Apply Now.
12. Can I pay out my loan early?
If you have a Standard Variable Rate loan, you may pay out your loan early without incurring early repayment fees, however, a deferred establishment fee may apply. For further details please refer to your Loan Schedule or HomePath Fees and Charges, 7 days a week.
If you have a Fixed Rate loan (including a Fixed & Variable Rate loan) an early repayment adjustment and administrative fee may be applicable if you repay the loans within a fixed interest rate period. For full details refer to HomePath Fees and Charges.
13. How will my HomePath statement be issued?
You will receive a statement every 6 months (bi-annual). If you have lost or misplaced your statement, please contact us on 1300 130 852* (if you are calling from outside Australia +61 1300 130 852 - international call rates apply) between 8am and 10pm (Melbourne time), 7 days a week. Or request a copy via the Service Request form in myHomePath. A Statement Fee is payable if you request a duplicate home loan statement at any time during the year, or if you require a statement to be issued at times other than 30 June and 31 December.
14. What does RMRA stand for?
RMRA stands for Required Monthly Repayment Amount. This is the minimum monthly repayment amount set up on your loan to allow you to pay your loan within the contracted term.
15. What does DDRA stand for?
DDRA stands for Direct Debit Repayment Amount. This is the amount that the customer elects to repay against their mortgage and is a payment directly debited out of a customer's nominated related account.
16. Will HomePath take a second mortgage as security?
No. Like most lenders, HomePath requires a registered first mortgage as security.
17. What type of security is HomePath unable to accept?
HomePath is unable to accept security which is not zoned as residential. Additionally vacant land, serviced/managed apartments, company title security, rural properties greater than 50 hectares (maximum 10 hectares for loans that require Lenders’ Mortgage Insurance) and security in a name other than the borrowers cannot be accepted by HomePath. For a full list refer to Who can apply.
18. If I move house can I still keep my loan for my new property?
Yes, a HomePath loan is fully portable. (Conditions and fees apply.)
19. What is the purpose of having a portable loan?
This type of loan can be transferred from one property to another. It saves you the costs of setting up a new home loan should you move.
20. What if the interest rate increases/decreases?
HomePath’s interest rates, including notification of any increases and decreases, are published weekly in a leading daily newspaper in each State or Territory. Also, the rates can be viewed at HomePath Rates .
You will receive a loan statement every 6 months that shows the current interest rate applicable to your loan. If the interest rate increases you may need to increase your repayments.
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21. What is discharge of loan?
A loan is discharged when it is paid in full, the title no longer has a mortgage registered against it, and can be released to you.
22. How do I discharge my loan?
Call us on 1300 130 852* (if you are calling from outside Australia +61 1300 130 852 - international call rates apply) between 8am and 10pm (Melbourne time), 7 days a week and request a discharge form to be sent out to you.
23. How long will it take HomePath to process my Switching Request?
Generally, HomePath will action your request within 2 business days of receipt. However, switches to a Fixed and Variable Rate loan may take up to 10 business days to process.
Please note that for switches to another rate type (eg switching from a standard variable rate to a fixed rate) the new rate applied to your loan will be the rate applicable on the date we process your request.
Fees and Charges
1. Are there any ongoing fees and charges?
No. There are no ongoing loan service fees or charges.
2. When do I have to pay a Deferred Establishment Fee (DEF)?
The Deferred Establishment Fee applies to all loans approved on and from 3 August 2004, if the loan is paid out, excluding changes to your loan or repayment type (i.e. switching),within the first four years from the date of the first loan drawing.
3. How will the DEF affect my loan if I have a Top-Up loan?
All Top-Up loans have the Deferred Establishment Fee shown on the loan schedule. Therefore, a DEF will be payable if the loan is repaid within 4 years from the first drawdown of the topped up loan.
4. When do I need to pay stamp duty or registration fees?
In most cases, mortgage stamp duty and registration fees will be debited to the loan. However, where you have selected the repayment option of interest only, these fees will be debited to your nominated related account.
If you are purchasing a property in Victoria, HomePath is required to pay the amount of Transfer Stamp Duty on your behalf to the Office of State Revenue. Where this is the case this amount will be debited to your related account.
Debits to your related account will generally be processed within 4 weeks of your loan being settled. If you wish to find out more information about stamp duty, please visit the Office of State Revenue for your State or Territory.
5. Do I have to pay mortgage stamp duty if I refinance?
If you choose to simply refinance a loan and the new loan amount is not exceeding the original amount of the loan being refinanced, where there are no changes to your name/s on the title deed or on the loan contract, you won’t be charged mortgage stamp duty – except in Qld and SA. However, under certain circumstances mortgage stamp duty may be payable in other States and Territories as well. Please contact the Office of State Revenue in your State or Territory for further details.
6. Other than government charges, what are the fees?
A complete list of fees is available in the Fees section and these will also be detailed in our loan offer to you.
7. Do first home buyers receive any stamp duty concessions?
Most State Governments also offer various means-tested packages to assist first home buyers. This may include eligibility for discounts on stamp duty.
For more information on the First Home Owner's Grant or other Government assistance programs, visit the First Home Owner’s Scheme web site or speak to your solicitor.
* A free call unless made from a mobile phone, which will be charged at the applicable mobile rate.
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