- Commonwealth Bank has raised its fixed home loan rates
- It's the last of the big four banks to lift fixed rates over the past week
- CommBank's two-year fixed home loan rates have risen by almost two standard cash rate increases
CommBank was the last of the big four to pull its fixed home loan rates higher as odds of another cash rate hike have firmed.
See also: CBA, ANZ move call of cash rate hike to next week
NAB, ANZ, and Westpac all lifted fixed rates last week, making it almost inevitable that CommBank would soon follow.
Australia's largest home lender announced on Tuesday it would be increasing fixed rates by up to 48 basis points across the range of its home loan products.
Its new lowest advertised rate is 6.78% p.a. (8.31% p.a. comparison rate*) on a one-year fixed home loan as part of CommBank's Wealth Package deal - a 29 basis point jump.
See also: What is a package home loan?
Here's a look at CommBank's new fixed rates for owner occupiers taking out a new home loan as part of a package and making principal and interest (P&I) repayments:
| Term | Interest rate (% change) | Comparison rate* |
| 1 year | 6.78% p.a. (+0.30) | 8.31% p.a. |
| 2 year | 6.82% p.a. (+0.48) | 8.19% p.a. |
| 3 year | 6.89% p.a. (+0.30) | 8.09% p.a. |
| 4 year | 6.89% p.a. (+0.25) | 7.99% p.a. |
| 5 year | 6.94% p.a. (+0.15) | 7.93% p.a. |
(*Comparison rate is based on a $150,000 loan taken out over 25 years.)
Interest rates are adjusted according to borrowers' loan-to-value ratios (LVRs) and are also higher if loans are taken up outside of the package deal.
The new lowest rate for investors is now 6.84% p.a. (8.82% p.a. comparison rate*) fixed for one year with P&I repayments, up 30 basis points.
CommBank two-year hikes close to two cash rate increases
CommBank applied its biggest increases to two-year fixed rates, all up between 45 to 48 basis points.
That's just under two standard 25-basis point cash rate hikes, sending a signal of where CommBank expects future interest rates will sit.
On Monday, CommBank and ANZ joined their big four counterparts in tipping a rise to the cash rate next week, bringing forward their earlier calls of a November hike.
ANZ updated its forecast to tip cash rate increases in both months while CommBank is so far holding fire on predicting another hike in November.
It's no surprise then the four big banks have been raising their fixed home loan rates and term deposit rates accordingly.
Rates on both products are set with future cash rate movements in mind, reflecting expected borrowing costs on wholesale financial markets.
Some lenders have begun raising fixed home loan rates over recent weeks, led by Australia's 'fifth big bank' Macquarie Bank which increased its fixed rates on 8 September.
However, higher home loan rates come at a time when demand for new mortgages has plummeted.
In the August financial reporting season, all four big banks revealed significant hits to new home loan applications following three consecutive interest rate increases in 2026 as well as changes to investor property taxes announced in the May federal budget.
Another one, or two, cash rate increases is likely to crush demand - and the property market - even further.
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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. | 5.95% 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 |
