Hot on the heels of Tuesday's cut to the cash rate, Commonwealth Bank of Australia has revealed home loan arrears stabilised in the June quarter, with 85% of its customers now ahead of their scheduled mortgage repayments.
This contradicts recent findings from Equifax that the dollar-value of mortgage arrears market-wide had increased 10.1% when measuring the second quarter of 2025 against the second quarter of 2024.
Australia's biggest bank released its full-year results to the end of June 2025 on Wednesday, reporting yet another record cash profit of $10.25 billion - up 4%.
Its profit announcement showed its home lending segment has continued to grow while loan impairment expenses had dropped 9% year-on-year.
CommBank's CEO Matt Comyn put this down to improved economic conditions.
"Pleasingly, many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation, and tax cuts," he said.
Most lenders have so far passed on 2025's first two cuts to the cash rate in full, with many announcing a third is on the way over the next few weeks.
CommBank announced on Tuesday it will pass on the latest 25 basis point cut to its variable home loan customers, taking effect on 22 August.
See also: RBA rate cut August 2025: Is your lender passing it on?
Home lending market share holds
The full-year report shows CBA is maintaining its 24.6% share of the home loan market, according to Reserve Bank data - unchanged from the previous six months.
This equated to more than 140,000 households taking out CommBank home loans during the financial year.
The report also shows the number of loans written through mortgage brokers has dropped to 34%, down from 35% the previous financial year.
However, the second half of FY25 saw brokers' share of all originated loans was lower again at 33%, suggesting the bank's strategy to write more loans in-house is taking effect.
Its investor presentation claimed broker-originated loans are 20-30 less profitable for the bank than loans taken out in-house.
Deposits also grow
Overall, domestic household deposits grew 9%, roughly in line with rising deposits across the banking system.
Both transaction and savings account deposits were higher, while balances held in mortgage offset accounts have shown steady growth since interest rate cuts kicked in from February 2025.
This accords with CommBank's previous revelation that around 90% of its variable home loan customers chose to keep their mortgage repayments the same after earlier interest rate cuts.
The results show the bank paid out more than $22 billion in interest to Australian savers.
Better outlook ahead
In delivering the bank's results, Mr Comyn was cautiously optimistic Australia's economic outlook would continue to improve.
“Despite global uncertainty, the Australian economy has remained resilient, with strong fundamentals including a healthy labour market, steady immigration and ongoing public sector investment," he said.
"Even though sentiment remains subdued, we expect economic growth to improve modestly as the year progresses.”
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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 |
