Commonwealth Bank makes sweeping home loan rate cuts by up to 50 basis points

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on February 14, 2020
Commonwealth Bank makes sweeping home loan rate cuts by up to 50 basis points

Photo by Matt on flickr

A few lenders cut home loan rates in the last week, with two banks cutting by up to 50 basis points.

There was relatively subdued activity on the home loan rate markets this week with the cash rate kept on hold at 0.75% earlier this month.

Among the few lenders adjusting interest rates this week were Commonwealth Bank, CUA, and MacArthur Credit Union (The Mac), with cuts to fixed rates observed across owner-occupier and investor loans.

For context, the table below displays some of the lowest-rate variable home loans currently on the market for owner occupiers: 

Lender

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of August 10, 2022. View disclaimer.

Commonwealth Bank

Commonwealth Bank made interest cuts of up to 50 basis points to a range of fixed-rate terms across owner-occupier and investment loans – both package and non-package.

Owner-occupier

  • Residential Fixed IO 1 yr: 10 basis point cut to 3.94% p.a. (4.86% p.a. comparison rate*)
  • Residential Fixed P&I 1 yr: 30 basis point cut to 3.14% p.a. (4.79% p.a. comparison rate*)
  • Residential Fixed P&I 4 yrs: 30 basis point cut to 3.34% p.a. (4.45% p.a. comparison rate*)
  • Residential Fixed P&I 5 yrs: 30 basis point cut to 3.34% p.a. (4.35% p.a. comparison rate*)

Wealth Package Residential

  • Residential Fixed P&I 1 yr 150k+: 30 basis point cut to 2.99% p.a. (4.59% p.a. comparison rate*)
  • Residential Fixed P&I 4 yrs 150k+: 30 basis point cut to 3.19% p.a. (4.34% p.a. comparison rate*)
  • Residential Fixed P&I 5 yrs 150k+: 30 basis point cut to 3.19% p.a. (4.26% p.a. comparison rate*)

Investment

  • Investment Fixed IO 1 yr: 50 basis point cut to 3.54% p.a. (5.34% p.a. comparison rate*)
  • Investment Fixed IO 2 yrs: 40 basis point cut to 3.54% p.a. (5.18% p.a. comparison rate*)
  • Investment Fixed IO 3 yrs: 40 basis point cut to 3.54% p.a. (5.03% p.a. comparison rate*)
  • Investment Fixed IO 4 yrs: 50 basis point cut to 3.64% p.a. (4.93% p.a. comparison rate*)
  • Investment Fixed IO 5 yrs: 50 basis point cut to 3.64% p.a. (4.82% p.a. comparison rate*
  • Investment Fixed P&I 1 yr: 45 basis point cut to 3.34% p.a. (5.32% p.a. comparison rate*)
  • Investment Fixed P&I 2 yrs: 25 basis point cut to 3.34% p.a. (5.14% p.a. comparison rate*)
  • Investment Fixed P&I 3 yrs: 45 basis point cut to 3.34% p.a. (4.97% p.a. comparison rate*)
  • Investment Fixed P&I 4 yrs: 35 basis point cut to 3.44% p.a. (4.85% p.a. comparison rate*)
  • Investment Fixed P&I 5 yrs: 35 basis point cut to 3.44% p.a. (4.72% p.a. comparison rate*)

Wealth Package Investment

  • Investment Fixed IO 1 yr 150k+: 50 basis point cut to 3.39% p.a. (5.13% p.a. comparison rate*)
  • Investment Fixed IO 2 yrs 150k+: 40 basis point cut to 3.39% p.a. (4.99% p.a. comparison rate*)
  • Investment Fixed IO 3 yrs 150k+: 40 basis point cut to 3.39% p.a. (4.87% p.a. comparison rate*)
  • Investment Fixed IO 4 yrs 150k+: 50 basis point cut to 3.49% p.a. (4.79% p.a. comparison rate*)
  • Investment Fixed IO 5 yrs 150k+: 50 basis point cut to 3.49% p.a. (4.69% p.a. comparison rate*)
  • Investment Fixed P&I 1 yr 150k+: 45 basis point cut to 3.19% p.a. (5.12% p.a. comparison rate*)
  • Investment Fixed P&I 2 yrs 150k+: 25 basis point cut to 3.19% p.a. (4.97% p.a. comparison rate*)
  • Investment Fixed P&I 3 yrs 150k+: 45 basis point cuts to 3.19% p.a. (4.83% p.a. comparison rate*)
  • Investment Fixed P&I 4 yrs 150k+: 35 basis point cut to 3.29% p.a. (4.74% p.a. comparison rate*)
  • Investment Fixed P&I 5 yrs 150k+: 35 basis point cut to 3.29% p.a. (4.63% p.a. comparison rate*)

CUA

CUA made rate cuts of up to 36 basis points to three of its 3-year fixed rate home loans.

Notably, the credit union cut its rate for owner-occupiers paying principal and interest to a competitive 3-year fixed rate of 2.84% p.a. (4.26% p.a. comparison rate*)

  • 3 Year Fixed Owner Occupier P&I: 14 basis point cut to 2.84% p.a. (4.26% p.a. comparison rate*)
  • 3 Year Fixed Investor IO: 36 basis point cut to 3.34% p.a. (4.79% p.a. comparison rate*)
  • 3 Year Fixed Investor P&I: 36 basis point cut to 3.14% p.a. (4.73% p.a. comparison rate*)

MacArthur Credit Union

The Mac cut fixed-rates across 1-year, 2-year and 3-year terms for owner occupiers and investors, with its 3-year fixed rates getting the biggest cut of 50 basis points:

  • Standard Fixed 1 Year: 20 basis point cut to 3.49% p.a. (3.99% p.a. comparison rate*)
  • Standard Fixed 2 Year: 20 basis point cut to 2.99% p.a. (3.86% p.a. comparison rate*)
  • Standard Fixed 3 Year: 50 basis point cut to 3.09% p.a. (3.80% p.a. comparison rate*)
  • Investor Standard Fixed 1 Year: 20 basis point cut to 3.79% p.a. (4.73% p.a. comparison rate*)
  • Investor Standard Fixed 2 Years: 20 basis point cut to 3.79% p.a. (4.64% p.a. comparison rate*)
  • Investor Standard Fixed 3 Years: 50 basis point cut to 3.79 p.a. (4.56% p.a. comparison rate*)



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.

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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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