Most Commonwealth Bank of Australia (CBA) variable home loans can be split, which is where debt recycling starts. Whether yours works depends on the loan type, any fixed portion and how redraw and offset are set up.
Home › Debt Recycling With Commonwealth Bank
Often, yes. CBA debt recycling is not a separate product. It runs on an ordinary CommBank home loan that can be split, with redraw on the investment split.
Whether your loan can do it depends on the loan type, any fixed portion, your equity and how much CommBank will lend against your income. If the strategy is new to you, start with how debt recycling works.
Facts on this page are according to CommBank's website (November 2026). Lender policy changes, so we confirm current policy with CommBank before any application.
| Feature | What CommBank's Website Says | Why It Matters |
|---|---|---|
| Split loans | A loan can be divided into two or more parts, fixed and variable or several of the same type. Most home loans can be split, except Viridian Lines of Credit. | Home and investment borrowing each need their own split. |
| Everyday Offset | Up to 99 Everyday Offset accounts can link to a Standard Variable Rate home loan. Its Simple and Digi home loans allow fewer. | Offset savings work against the home split, not the investment split. |
| Redraw | No fees to redraw. No minimum when you redraw electronically, and a $1,000 minimum over the counter in a branch. | Free electronic redraw suits recycling in small, regular amounts. |
| Interest only | On the Standard Variable Rate loan, up to 15 years over the life of an investment home loan and five years for an owner-occupied loan. | Investment splits are often interest only. Which limit applies depends on how CommBank classes the split. |
| Fixed Rate | Extra payments up to $10,000 for each year of the fixed term without an Early Repayment Adjustment. | Recycling runs through variable splits, not the fixed one. |
| Wealth Package | A $395 annual fee, paid in advance. It can't be held in the name of a business or family investment trust. | Relevant if your loan sits in a package or a trust is involved. |
Our page on how we structure the loan shows where the home split, investment split and offset usually sit.
Three CommBank products can't recycle well as they stand.
CommBank says redraw is not available during the fixed rate period. Paying down a fixed split and redrawing it to invest has to wait until the fixed term ends.
CommBank says redraw is not available on Economiser Interest Only loans for the life of the loan, even after they roll over to principal and interest. A split on this product usually needs a change of loan type before it can recycle.
CommBank lists the Viridian Line of Credit as unavailable for new fundings and limit increases since 3 June 2023, and it can't be split. A new setup would use split home loans instead.
The aim is for every split to have one purpose. The Australian Taxation Office (ATO) says interest on borrowing used for both private and income-producing purposes must be apportioned between them.
Redrawing from the wrong split is the most common way the record gets mixed, as our redraw contamination guide explains.
If your loan is variable, splits cleanly and has redraw, a change to the existing CommBank loan is often enough. Your total debt stays the same and no new lender is involved.
A move is worth weighing when the product can't redraw, can't split the way you need, or the fees across several splits add up. Our page on refinancing for debt recycling lists the costs to count, including any Early Repayment Adjustment on a fixed portion.
We compare 40+ lenders, CommBank included, and start with what your current loan can do.
We arrange the lending only. Your financial adviser recommends investments, and your accountant or registered tax agent confirms the tax position. See what working with our debt recycling broker involves.
Debt Recycling Loans is not affiliated with Commonwealth Bank. Commonwealth Bank is one of 40+ lenders on our panel.
You can often debt recycle without leaving CommBank if your loan is variable, splits cleanly and has redraw on the investment split. Fixed Rate, Economiser Interest Only and Viridian Line of Credit products are the ones to check first.
A short call with Alex sets out what your current CommBank loan can do and what would need to change.
Book a free, no-obligation call and Alex will tell you whether your current CommBank loan can recycle as it stands.
Request a Call With Alex →Free, no-obligation call · We call back within 1 business day
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CommBank's website lists a Split in NetBank option for existing loans, and a Home Lending Specialist can also help. Its switching matrix shows which loan types can be split.
CommBank's website says there are no fees to redraw. There is no minimum when you redraw electronically, and a $1,000 minimum over the counter in a branch.
Not easily. CommBank says redraw is not available on Economiser Interest Only loans for the life of the loan, so the loan type usually needs to change first.
Up to 99 Everyday Offset accounts on a Standard Variable Rate home loan, according to CommBank's website (November 2026). For debt recycling, the offset belongs on the home split.
CommBank says its Viridian Line of Credit has been unavailable for new fundings and limit increases since 3 June 2023, and it can't be split. A new setup would use split home loans instead.
Not always. If your loan is variable and can be split with redraw, a change to the existing loan may be enough. We confirm CommBank's current policy before anything is applied for.
What a debt recycling home loan needs: separate splits, usable redraw, the right repayment type and fair fees, and whether to vary or refinance.
Read more → GUIDEWhich lenders support debt recycling? Compare loan features, borrowing capacity, refinancing costs and why lenders decline, with worked lending scenarios.
Read more → GUIDELearn how debt recycling loan splits work, how many may be needed and why clean sub-accounts matter for tracing investment interest.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
Next Step
Talk it through with Alex
Bring a rough picture of your home loan, income and savings. You will come away knowing whether the lending side looks workable.
Free, no-obligation call · We call back within 1 business day
Prefer to talk now? Call 0438 376 200
