Off the back of Macquarie's decision to cut variable rates by 25 basis points earlier this week, CommBank has responded with a 15 basis point decrease of its own. 

The decision comes with the RBA set to meet next week to determine the cash rate for July, with CommBank economists amongst the many others forecasting another 50 basis point increase. 

Taking into consideration the 50 basis point increase to variable rates earlier in the month, CommBank has moved variable rates north by 0.35% p.a in June. 

CommBank Chief Economist Stephen Halmarick said the hike might be shallower than market expectations.

"While our view of a shallow rate hike cycle is based predominantly on the impact on household balance sheets and spending from the coming large increase in mortgage funding costs, a tightening of fiscal policy will also support our monetary policy views," Mr Halmarick said. 

Key changes to CommBank's variable rate portfolio for owner occupiers and investors include:

  • Extra P&I <70%: 15 basis point decrease to 2.79% p.a. (2.80% p.a. comparison rate*)
  • Extra P&I 70-80%: 15 basis point decrease to 2.89% p.a. (2.90% p.a. comparison rate*)
  • Investment Extra P&I <70%: 15 basis point decrease to 3.09% p.a. (3.10% p.a. comparison rate*)
  • Investment Extra P&I 70-80%: 15 basis point decrease to 3.19% p.a. (3.20% p.a. comparison rate*)

At the opposite end of the ladder, CommBank has increased fixed home loan rates for new customers by 140 basis points.

This increase means Australia's largest bank is now offering a number of home loans for owner occupiers and investors beginning with a 6 or 7 - a significant change from 18 months ago when many of these fixed products enjoyed rates under 2.00% p.a.

Speaking to Savings.com.au recently, Samuel Philipos director of mortgage brokers Benevolence Financial Group (BFG) said a number of Australians are still favouring fixed rate loans for certainty.

"The logic behind this is that even though fixed rates are much higher, it’s about around certainty," Mr Philipos said.

"It’s the friction between lower short term costs and long term certainty and deciding between which of those two is more valued."

Key changes to CommBank's fixed rate portfolio for owner occupiers and investors all with 95% loan-to-value ratio include:

  • Residential Fixed P&I 3 Years: 140 basis point increase to 6.54% p.a. (5.79% p.a. comparison rate*)
  • Residential Fixed P&I 5 Years: 140 basis point increase to 6.84% p.a. (6.12% p.a. comparison rate*)
  • Residential Fixed IO 3 Years: 140 basis point increase to 6.99% p.a. (6.84% p.a. comparison rate*)
  • Residential Fixed IO 5 Years: 140 basis point increase to 7.29% p.a. (7.14% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 140 basis point increase to 6.74% p.a. (6.59% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 140 basis point increase to 7.04% p.a. (6.89% p.a. comparison rate*)
  • Investment Fixed IO 3 Years: 140 basis point increase to 6.84% p.a. (6.69% p.a. comparison rate*)
  • Investment Fixed IO 5 Years: 140 basis point increase to 7.14% p.a. (6.99% p.a. comparison rate*)

Advertisement

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.

Update resultsUpdate
Filters
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.94% p.a.
5.98% p.a.
$2,978
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.89% p.a.
5.80% p.a.
$2,962
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.99% p.a.
6.02% p.a.
$2,995
Principal & Interest
Fixed
$0
$0
60%
  • Owner Occupier
  • Fixed 3 Years
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Competitive rates to help you save
  • A Dedicated Relationship Manager
  • Certainty of repayments with a fixed rate term
 Disclosure
5.93% p.a.
5.93% p.a.
$2,975
Principal & Interest
Variable
$0
$395
70%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 30% Min Deposit
  • Redraw
  • More details
 Disclosure
More home loans
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
Compare More Home Loans