Commonwealth Bank cuts three-year fixed-rate home loan to 4.99%

Australia's biggest mortgage lender the Commonwealth Bank has cut interest rates on new three-year fixed rate home loans to 4.99% per annum.

The new rate is available under its Wealth Package offering and is a 10 basis point discount on its previously advertised rate of 5.09%.

The rate requires a minimum loan amount of $150,000.

It is one of the lowest three-year fixed-rate offering of the four major banks.

ANZ also offers a 4.99% fixed-rate for three years under its Breakfree home loan package offering.

"Fixed rate home loans are currently popular amongst home buyers," says Clive van Horen, acting head of retail banking for the Commonwealth Bank.

“Our fixed rate home Loans are now at a 23-year low.

"We are increasingly seeing our customers choosing to fix all, or part of their home loans.” says van Horen.

A spokesperson for the bank added that the majority of customers fixing their rate are new customers, but there is also a significant number of existing customers choosing to fix.

Click here for a guide to what the other major banks are offering fixed and variable mortgage customers.