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 LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • 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.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Harrison Astbury 



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy