The special offer of 4.99% p.a. (7.24% p.a. comparison rate*) fixed for two years applied to owner occupiers with a loan-to-value ratio (LVR) of 70% or less taking out a package loan.
The deal was launched in September when CommBank's big bank peer Westpac was offering a two-year fixed rate of 4.89% p.a. with big four challenger bank Macquarie also offering a 4.99% two-year fixed rate.
But times have changed.
Since then, the prospect of further cuts to the Reserve Bank cash rate have been quashed with inflation once again rearing its head in a heating economy.
Economists generally agree there will be no more cuts to the 3.6% cash rate with some forecasting an uptick at the next rate movement.
Fixed rate home loans heading higher
With further rate cuts all but off the table, home lenders have generally responded by lifting fixed home loan rates across the market.
CommBank was the last of the big banks offering a sub-5% home loan rate with both Westpac and Macquarie raising their fixed-rate home loans earlier this month.
At the time, Westpac said its move reflected the increased cost of fixed-rate funding and would ensure its fixed home loan rates remained "aligned with current market conditions".
Currently, CommBank-owned Bankwest is still offering its 4.99% p.a. (7.64% comparison rate*) two-year fixed rate package loan deal for borrowers with up to 80% LVR.
A slew of smaller lenders are also offering fixed home loan rates under 5%, although the number has dropped in November.
Inflation back under watch
On Wednesday, the ABS is due to release its first full monthly Consumer Price Index (CPI) report.
This will replace the usual partial monthly CPI indicator with a complete CPI, which has previously been released quarterly.
CommBank economists are expecting the annual inflation rate to drop 0.2% in October, bringing the annual rate to 3.6%.
They forecast inflation will remain in the upper half of the Reserve Bank's 2-3% target band through 2026, indicating the cash rate will remain on hold throughout the next year.
This sentiment has prompted many lenders to lift their fixed-rate home loans while term deposit rates have also been climbing in November.
The Reserve Bank monetary policy board is due to hold its last meeting for the year on 8-9 December.
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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 |
