There was some good news for many Australian home loan borrowers this week, as it emerged that one of the big banking giants is offering eligible customers access to free internet. Home loan borrowers with Commonwealth Bank (CBA) struggling with interest rate increases could benefit from free internet for three years.
According to reports, the bank has partnered with the broadband provider, More, to launch the offer. Home loan borrowers who are conditionally preapproved and meet the eligibility criteria will be able to benefit from the offer, which could save them over $2,700.
In addition to this, the bank is also helping out existing customers, as they can access a deal that provides them with a year of cheap internet services with 30% off More’s plans. CBA is a minority shareholder in the broadband company through which the offers are being launched.
Helping customers to tackle soaring inflation and rising interest rates
Bank officials said they had launched these offers to help customers combat the impact of soaring inflation and interest rate hikes.
Dr Michael Baumann, Executive General Manager of Home Buying at CBA, said, “We know that the rising cost of living is being felt by all Australians, particularly those looking to purchase a property in the current environment. We want to support preapproved home loan customers where we can, and that includes longer-term savings on essential and ongoing bills and commitments like internet.”
With internet services an essential utility in most homes, these offers from CBA could prove invaluable to many of its customers. For many homeowners and buyers, rocketing inflation and rising interest rates have made it very difficult to make ends meet financially. Any help with essential costs and bills could make a big difference to those who are struggling.
According to Dr Baumann, many Australians have been trying to reduce their outgoings to make their money go further, and this includes trying to find ways to cut essential costs such as utilities. For those with mortgages, average monthly repayments could increase by up to $500 by the early part of next year, putting significant financial strain on household finances.
An unprecedented move
Andrew Branson, the co-founder of More, said that this was an unprecedented move that could make a significant positive difference to struggling households.
He described the offer as “unbelievable,” adding that the NBN did not have to be connected at the address where the loan was settled.
Branson praised the bank for launching the offer, stating, “This type of customer benefit has never been seen before and hats off to CBA for trying something new that will make a meaningful difference to their customers.“