CommBank announced the sweeping cuts to it home loan rates on Friday afternoon, joining other major banks in taking the axe to fixed rates.
But it's also dropped a range of its variable rate home loans, some by as much as 35 basis points for investment loans.
It marks the first time CommBank has changed its home loan rates since November 2023.
New variable rates
New owner occupiers can now get a Wealth Package standard variable rate of 6.79% p.a. (7.16% p.a. comparison rate*) with a loan-to-value ratio (LVR) of 80-90% making principal and interest (P&I) repayments.
Here are the new Wealth Package owner occupier variable interest rates:
| Product | Change (%) | New rate | Comparison rate* |
| LVR 60% or below | -0.15 | 6.34% p.a. | 6.72% p.a. |
| LVR 60.01-70% | -0.20 | 6.39% p.a. | 6.77% p.a. |
| LVR 70.01-80% | -0.20 | 6.49% p.a. | 6.87% p.a. |
| LVR 80.01-90% | -0.15 | 6.79% p.a. | 7.16% p.a. |
Owner occupier rates under the bank's Extra Home Loan are 10 basis points higher (comparison rates* range from 6.45% p.a. to 6.90% p.a.).
Generally, variable rates have fallen by 20 basis points for those with larger deposits, while they're up to 35 basis points lower for investors taking out Wealth Package variable rate loans.
But in line with other recent market moves, it is CommBank's fixed rate loans that have seen the biggest cuts on Friday.
Fixed rates down by up to 70 basis points
Australia's biggest bank has cut fixed rates across one- to four-year terms by up to 70 basis points.
It will see the advertised rate for an owner occupier with a Wealth Package loan fixed for one year at 6.39% p.a. (8.27% comparison rate*) for P&I repayments.
That's a 20-basis point drop on the old rate.
The three-year rate has seen the biggest cut at 70 basis points, taking the new rate to 5.89% p.a. (7.80% p.a. comparison rate*).
CommBank joins its rather large banking peers NAB, Westpac, and Macquarie Bank in slashing fixed rate mortgages in the past month.
NAB cut some of its fixed rate loans in July while Macquarie and Westpac moved this month - Westpac on Wednesday.
That leaves ANZ as the last major lender to make a move.
Mortgage market heating up
Friday's move by Australia's biggest bank is being read as another sign the mortgage market is heating up ahead of a long-anticipated cut to the cash rate.
CommBank is the only major bank still sticking to its forecast of a cash rate cut in November, despite the RBA hosing down the possibility.
The other three big banks have all revised their forecasts to 2025.
Commentators see the drop in fixed rates across the market as a sign that home lenders are preparing for the next round of "mortgage wars".
It's speculated the major banks have been slashing term deposit rates in a bid to boost their war chests ahead of renewed competition in the home loan market.
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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 |
