- CBA has cut fixed-rate mortgages by 40 basis points
- This applies to both investment and owner occupied home loans
- The annoucement comes in the same week the bank announced slight increases to variable rates.
Commonwealth Bank have cut fixed rates for both owner occupied and investment home loans.
Those who take on a three year fixed loan with CBA will now pay 5.59% p.a (7.20% p.a comparison rate*) in interest if they intend to live in the property, while investors will be charged 5.65% p.a. (6.04% p.a comparison rate*).
Australia's largest bank is following a trend set by several smaller banks and lenders that have cut fixed rates over the past few weeks, including ING, which slashed fixed rates by 25 basis points at the start of this month.
CBA's rates only apply to customers who pay for the Wealth Package, which involves a $395 annual fee.
However, CBA also announced earlier this week increases of up to 12 basis points on variable rate home loans for new customers - again for Wealth Package Customers.
| LVR | Rate (Basis point increase) | Comparison rate* |
| <60% | 5.44% p.a (+0.10) | 5.83% p.a |
| 60%-70% | 5.54% p.a (+0.12) | 5.93% p.a |
| 70%-80% | 5.64% p.a (+0.12) | 6.03% p.a |
| 80%-90% | 6.19% p.a (unchanged) | 6.57% p.a |
| 90%-95% | 6.99% p.a (unchanged) | 7.36% p.a |
| Variable rate without wealth package | 8.05% p.a (unchanged) | 8.19% p.a |
This comes after NAB announced it will grandfather its packaged home loans from mid-March, while ANZ binned its 'Breakfree' products after legal turmoil in 2022.
Westpac continues to offer its Premier Advantage package.
CBA introduces green car loan for businesses
CBA announced it will offer a discounted rate for green cars for businesses, with one percentage point slashed off the standard rate.
This applies to new or used electric or hydrogen cars, trucks, vans or buses up to the value of $250,000.
“This new green asset finance offering is designed to assist companies in the manufacturing, logistics and construction sectors who are focused on lowering their running costs and energy wastage, while also reducing carbon emissions," said Chris Moldrich, CBA's general manager of asset finance.
There will also be a 50 basis point reduction in the interest rate on loans used to finance associated equipment such as charging and storage assets.
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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.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
