Broker guide
Minimum Home Loan Amounts and Small Mortgages 2026
A small balance can still miss a lender’s product minimum. Check the minimum home loan amount, fixed fees and whether a refinance is worthwhile.
- Published
- Updated
The minimum home loan amount depends on the product and the transaction. CommBank publishes $10,000 minima for its Simple and Standard Variable Rate home loans, while Macquarie’s Basic and Offset home loans start at $150,000. A small refinance therefore needs a product-specific check before you compare rates.
Which Minimum Applies
Identify whether the client needs a new loan, a top-up or a separate loan account. A product’s minimum initial advance answers a different question from the minimum increase on an existing facility.
For a purchase, compare the proposed advance with the chosen product’s minimum. For a refinance, calculate the required new borrowing from the payout and any costs being financed. A small payout balance can fall below a new lender’s entry requirement even when the existing mortgage remains open.
A split minimum applies to an individual loan account within the facility. A lender can accept the total loan while requiring a minimum allocation to its variable account. Separately, a package or discounted offer can have a borrowing threshold that exceeds the underlying product minimum.
The balance remaining after repayments is another figure. Paying a loan down doesn’t mean the client is applying for a new advance at that smaller amount. The existing contract governs the facility, including any redraw access and closure conditions.
For example, a hypothetical borrower has repaid a $200,000 loan to $35,000. A lender’s $100,000 new-loan minimum doesn’t establish that the existing account must close. It does prevent a straightforward $35,000 refinance into that product unless another applicable pathway permits it.
Compare Current Lender Requirements
Compare the named product and transaction, because a lender can publish several different minima. These examples distinguish new lending from changes to an existing facility.
| Lender and Product | Transaction | Published Minimum | What the Figure Applies To |
|---|---|---|---|
| CommBank Simple Home Loan | New loan | $10,000 | Product minimum for individual borrowers |
| CommBank Simple Home Loan | Top-up | $10,000 | Additional borrowing, subject to equity and approval |
| CommBank Standard Variable Rate Home Loan | New loan | $10,000 | Product minimum, including eligible purchase and refinance purposes |
| CommBank Digi Home Loan | New loan through its digital pathway | $100,000 | Separate product minimum |
| Macquarie Basic and Offset Home Loans | New loan | $150,000 | New lending requirement for these products |
| Macquarie Basic and Offset Home Loans | Increase | $25,000 | Minimum increase to an existing facility |
| Macquarie Offset Home Loan | Variable loan account | $20,000 | Minimum variable-account limit within the facility |
The Macquarie $20,000 variable-account requirement doesn’t create a $20,000 new-home-loan option. Its $150,000 new-lending minimum still applies. Likewise, CommBank’s $10,000 Simple top-up minimum is the extra borrowing requested, not the total outstanding mortgage.
Purpose and Application Channel
CommBank’s Simple guide permits purchase and refinance, but excludes land purchase, construction and bridging. Its Standard Variable Rate guide includes those purposes. A matching dollar amount still needs the right product for the transaction.
Digi has its own online application pathway. Its target market determination also states that existing CommBank home loan customers cannot switch or internally refinance into a digital home loan product. Don’t treat an online product’s minimum as the rule for every broker, branch or existing-customer application.
Before making a recommendation, record the product name and application channel beside the requested amount. Where the request involves several accounts, identify both the facility minimum and each applicable account minimum.
Assess Fees on a Small Balance
Compare the total cost over the client’s remaining repayment period, because fixed charges can exceed the interest saving on a small loan. Include establishment and discharge costs alongside ongoing account or package fees.
Moneysmart’s switching guidance recommends comparing switching costs and keeping the new term close to the remaining term. A longer term can reduce the repayment while increasing total interest.
The following hypothetical comparison uses a $40,000 balance with five years remaining. Both loans have monthly principal-and-interest repayments, unchanged rates and no extra repayments. Fees are illustrative amounts paid separately, not quoted lender charges.
Worked Small-Loan Comparison
| Cost Over Five Years | Keep Existing Loan | Refinance |
|---|---|---|
| Interest rate | 6.50% | 6.00% |
| Monthly repayment, approximately | $783 | $773 |
| Total interest, approximately | $6,959 | $6,399 |
| Upfront switching costs | $0 | $600 |
| Ongoing fees | $0 | $120 a year, or $600 total |
| Interest and stated fees, approximately | $6,959 | $7,599 |
The lower rate saves about $560 in interest, but the $1,200 of switching and ongoing costs leaves refinancing about $640 more expensive. Both loans repay the same principal over the same term. The comparison therefore isolates the cost difference without treating repaid principal as a saving.
Actual lenders generally calculate interest daily, so the example uses a simplified monthly calculation. If fees are added to the loan, include interest on those fees too. An early sale or faster repayment also changes how long the client has to recover switching costs.
Use the actual quote and the refinance calculator to compare the client’s figures. Review the relevant home loan fees before treating an advertised rate as a net saving.
Choose the Appropriate Next Step
Keep the existing facility when its remaining cost is lower and it still meets the client’s needs. Moneysmart recommends asking the current lender for a better deal before switching, so compare a retention offer with the cost of an external refinance.
An internal product change can also be worth assessing. Include its variation fee and any lost features in the comparison. Where a fixed rate applies, obtain the break-cost figure before deciding whether the change saves money.
For a genuine additional funding need, compare a permitted top-up with a separate loan account or another suitable form of credit. Keep the repayment period tied to the purpose. A small renovation expense can cost more in interest if it is repaid over a much longer mortgage term.
Don’t increase the requested borrowing solely to cross a product minimum. The amount needs to serve the client’s actual purpose and pass the lender’s assessment. Compare another eligible product or retain the existing facility when that delivers the better result.
Before proceeding, the file needs two answers: the requested structure meets the selected product’s minimum, and its expected benefit exceeds its costs. Record both using the client’s required amount and intended repayment period.
