Commonwealth Bank the latest to raise fixed home loan rates

author-avatar By on May 21, 2021
Commonwealth Bank the latest to raise fixed home loan rates

CommBank has increased interest rates on three, four, and five year fixed loans for owner occupiers by between five and 10 basis points.

The increases were seen across fixed and 'Wealth Package' home loans, paying principal & interest (P&I), and interest only (IO). Details are:

  • Residential Fixed 3 Years P&I: 5 basis point rise to 2.34% p.a. (4.12% p.a. comparison rate*)
  • Residential Fixed 4 Years P&I: 5 basis point rise to 2.39% p.a. (3.97% p.a. comparison rate*)
  • Residential Fixed 3 Years IO: 10 basis point rise to 3.64% p.a. (4.45% p.a. comparison rate*)
  • Residential Fixed 5 Years IO: 10 basis point rise to 4.04% p.a. (4.48% p.a. comparison rate*)
  • Wealth Package 3 Years IO: 10 basis point rise to 3.49% p.a. (4.15% p.a. comparison rate*)
  • Wealth Package 5 Years IO: 10 basis point rise to 3.89% p.a. (4.24% p.a. comparison rate*)
  • Wealth Package 3 Years P&I: 5 basis point rise to 2.19% p.a. (3.85% p.a. comparison rate*)
  • Wealth Package 4 Years P&I: 5 basis point rise to 2.24% p.a. (3.74% p.a. comparison rate*)

The four-year packaged loan was previously one of the first of the big four banks' home loans to be cut below the 2% threshold after November 2020's Reserve Bank rate cut.

MyState Bank decreases variable rates

MyState Bank has decreased variable interest rates on some owner occupier home loans by 10 basis points. The cuts were mainly for borrowers with larger deposits, between 60 and 80% LVR.

  • Basic Variable 80%: Down to 2.49% p.a. (2.52% p.a. comparison rate*)
  • Basic Variable 70%: Down to 2.44% p.a. (2.47% p.a. comparison rate*)
  • Basic Variable 60%: Down to 2.39% p.a. (2.42% p.a. comparison rate*)

Note that the latter two appear to be 'Special Offers', meaning the offer could be withdrawn any time, or that borrowers may need to sign up by a certain date.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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 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.


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Harrison is a Senior Finance Journalist, and joined Savings in 2020. Prior to joining Savings, 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 informing readers on the strings being pulled in high-up places and how it affects everyday Australians.

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