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 | 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 |
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.