CommBank cuts and hikes home loan interest rates

author-avatar By
on March 22, 2021
CommBank cuts and hikes home loan interest rates

This morning Commonwealth Bank cut to its 'lowest ever' two-year fixed interest rate for owner occupiers on its 'Wealth Package' mortgage.

However, two other CommBank mortgage interest rates were hiked.

Commonwealth Bank home loan cuts 

The two-year Wealth Package home loan rate was cut by 20 basis points down to 1.94% p.a. (3.93% p.a. comparison rate*) for owner occupiers paying principal & interest (P&I).

The minimum eligible loan size is $150,000 and the maximum loan-to-value ratio (LVR) is 95%.

The 'Wealth Package' line of home loans has no upfront home loan establishment fees, monthly home loan service fees or annual credit card fees, with borrowers paying an annual package fee of $395 instead. 

Below is how CommBank's home loan compares to other lenders in the market across both fixed and variable terms for owner occupiers, keeping in mind the comparison rate.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 21, 2022. View disclaimer.

Various other packaged and non-packaged CommBank home loans for owner occupiers were also cut by either 10 or 20 basis points.

Commonwealth Bank home loan increases

Notably, however, a couple of CommBank home loans were raised by 20 basis points, as seen below: 

  • Wealth Package OO Fixed P&I 4 Years: Up to 2.19% p.a. (3.73% p.a. comparison rate*)
  • OO Fixed P&I 4 Years: Up to 2.34% p.a. (3.96% p.a. comparison rate*)

The 4-year 'Wealth Package' rate hike is notable, because this was CommBank's first foray into the sub-2% home loan world following the Reserve Bank's 'Melbourne Cup cash rate cut' in November.

This rate hike for longer fixed-term loans follows on from last week when Adelaide Bank made similar changes.

There could be various explanations for this, with financial markets 'pricing in' a Reserve Bank rate hike earlier than initially anticipated, as well as a change to the Term Funding Facility taking effect from July.

Some pundits predict this will spell an end to 'record low' fixed home loan rates.


Photo by Maksym Kozlenko on Wikimedia Commons

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy