The new offer from CommBank is a two-year fixed rate of 4.99% p.a. (7.24% p.a. comparison rate*) for eligible owner-occupiers with an LVR of 70% or less.
To access the 4.99% p.a. fixed rate, customers must be eligible for CBA's Wealth Package, which includes an annual fee of $395 and requires a minimum lending amount of $150,000.
Borrowers can access the deal by working with CommBank Home Lending Specialists or mortgage brokers.
The offer also extends to new customers and existing variable-rate holders who want to lock in a fixed rate, either wholly or as a split loan.
CommBank economists anticipate a 25 basis point RBA rate cut in November, projecting the cash rate to fall to 3.35% by the end of 2025.
CommBank goes toe-to-toe with Macquarie
This change positions Commonwealth Bank as the only big four bank to offer home loan interest rates below 5%.
See also: Which home loans offer interest rates below 5%?
But as far as bigger lenders go, Macquarie is still giving CommBank a run for its money as it matches the latter's standout 4.99% p.a. (5.54% p.a. comparison rate*) basic home loan fixed rate for customers with 70% LVR on P&I repayments.
Macquarie earlier levelled the playing field with CommBank's Digi Home Loan when it slashed variable rates by another 5 basis points for both owner occupiers and investors, bringing its lowest owner-occupier rate to 5.34% p.a. (5.47% p.a. comparison rate*) for loans up to 60% LVR.