Interest rate cut: Commonwealth Bank Australia follows Westpac and drops fixed rates below 5 per cent
Commonwealth Bank is the latest big-four bank to drop fixed interest rates just weeks before the Reserve Bank announces its next move.
CommBank is dropping its two-year introductory fixed home loan rate to 4.99 per cent for eligible owner-occupiers making principal and interest repayments.
But to be eligible, customers need a loan-to-valuation ratio under 70 per cent.
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By continuing you agree to our Terms and Privacy Policy.The mortgage holder would also need to be eligible for a CommBank home loan wealth package that requires a minimum “package lending balance” of $150,000 across home loans or lines of credit.
For homeowners looking to lock in regular rates with CommBank, two-year fixed rates with a wealth package start at 5.44 per cent.
Standard two-year fixed rates come in at 5.59 per cent.
Three-year fixed rates start at 5.34 per cent with a wealth package, while four-year rates come in at 5.79 per cent.
“At CommBank, we’re committed to helping our customers navigate their home ownership journey with confidence – offering a diverse range of home-loan options supported by expert guidance and smart digital tools,” a CommBank spokesperson told NewsWire.
The move follows Westpac late last month taking a “chainsaw” to its fixed interest rates, becoming the first major bank to offer customers a rate below 5 per cent since rates maxed out in 2023.
The big-four bank has dropped its two-year fixed interest rate by 70 basis points to 4.89 per cent.
Australia’s Cash Rate 2022
For mortgage holders looking to lock in rates for one year, Westpac has dropped it by 50 basis points to 5.19 per cent.
Canstar data insights director Sally Tindall described the cuts at the time as “Westpac has taken a chainsaw to its fixed rate”.
“It’s a decisive move from the big four bank, with Friday’s cuts meaning Westpac now has the lowest fixed rate out of the majors,” she said.
The lowest fixed rate on the market is 4.69 per cent.
Comm Bank predicts mortgage holders will get just one more interest-rate cut.
“With the broader economy showing signs of resilience and the consumer returning to a more solid footing, we don’t see the need for the RBA to go much further,” CommBank head of Australian economics Belinda Allen said.
“We continue to expect just one more cut in November but no change at the RBA’s September meeting.”
Originally published as CBA follows Westpac and drops fixed rates below 5 per cent
