CBA leads big bank rate cut as 36 lenders cut fixed rates in October

The nation’s biggest mortgage lender was one of 36 lenders that cut their fixed rates in October. 

The Commonwealth Bank cut its five-year fixed rate by 85 basis points to 6.89% in October, the biggest fixed-rate cut of all the major banks, according to RateCity.com.au. 

All the major banks have cut their fixed rates by at least 50 basis points for spring, according to the mortgage comparison website. 

Since the first of August this year, 90% of mortgage lenders have lowered some of their fixed rates, with some cutting fixed rate home loans by as much as 140 basis points in that time. 

The average three-year fixed rate is now 6.61% compared with 7.43% at the start of the year. 

Newcastle Permanent Building Society is offering a three-year fixed rate of just 5.99%, equating to repayments of just over $1,600 on a $250,000 mortgage – the lowest fixed rate of all lenders, according RateCity.com.au. 

"On average, three-year fixed rates have dropped by 66 basis points since the start of August, while five-year rates have fallen by 68 basis points on average. The three-year fixed rate has moved nine basis points in the first half of October alone,” RateCity.com.au Damian Smith says. 

"For a $300,000 mortgage, if you took up the average three-year fixed rate now compared to August 1, your repayments would be $122 less per month, saving you around $4,400 over three years. 

"Take up the lowest available three-year fixed rate now and the savings would be closer to $7,000 after three years," he says.