Commonwealth Bank slashes variable home loan rates, hikes fixed rates

The biggest increases applied to five-year fixed home loans paying interest-only, increased by 30 basis points.

Other noteworthy increases included:

• Residential Fixed P&I 2 Years: 15 basis point increase to 2.99% p.a. (4.41% p.a. comparison rate*)
• Residential Fixed P&I 4 Years: 20 basis point increase to 3.69% p.a. (4.40% p.a. comparison rate*)
• Investment Fixed P&I 2 Years: 10 basis point increase to 3.14% p.a. (4.91% p.a. comparison rate*)
• Investment Fixed P&I 4 Years: 20 basis point increase to 3.89% p.a. (4.85% p.a. comparison rate*)

'Wealth Package' fixed home loans were also increased by similar margins. 

Exactly a year ago, the four year fixed rate for residential loans had an interest rate of 2.14% p.a. (3.89% p.a. comparison rate*).

A 155 basis point increase on a $400,000 home loan on a 30-year term could equate to $332 per month extra in interest paid.

Meanwhile, Australia's largest bank also slashed interest rates by 40 basis points on some variable loans including:

• Investment Extra IO 70%: Now 3.05% p.a. (2.71% p.a. comparison rate*)
• Investment Extra IO 80%: Now 3.15% p.a. (2.81% p.a. comparison rate*)
• Investment Extra P&I 70%: Now 2.49% p.a. (2.50% p.a. comparison rate*)
• Investment Extra P&I 80%: Now 2.59% p.a. (2.60% p.a. comparison rate*)

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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
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	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.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	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.	Go to site	Compare	Promoted	Disclosure
Regional Australia Bank	Regional Australia Bank Home Loan Fixed (Owner Occupier, Principal and Interest, max lvr 60%) (3 years)	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	Go to site	Compare	Promoted	Disclosure
Homestar	Homestar Star Nova LVR <70% (Owner Occupied, Principal and Interest)	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		Go to site	Compare		Disclosure
Reduce Home Loans	Reduce Home Loans EconoME Home Loan (Owner Occupier, Principal & Interest, LVR 60%)	5.99% p.a.	6.01% p.a.	$2,995	Principal & Interest	Variable			$0	$150	60%				$3000 Cashback T&Cs apply Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details		Go to site	Compare		Disclosure

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