Commonwealth Bank cuts three-year fixed rates to 4.89% and makes fixed-rate pledge

The Commonwealth Bank has become the first major bank lender to announce cuts to its fixed-rate home loans in the wake of this week's RBA cash rate cut.

Australia's biggest home loan provider has cut the interest rate on its three-year fixed rate home loans by 10 basis points to 4.89% per annum.

The new rate is inclusive of any package discounts and required a minimum loan amount of $150,000.

The new rate kicks in from tomorrow (Friday 9 August) and is available to new and existing customers who take out a new fixed rate home/investment home loan or switch into one of these products.

The bank has also committed to beating the advertised rates on one-to-five year fixed rate home loans from competitors ANZ, NAB, Westpac, St George, Bank of Melbourne, and Bank SA for the next seven weeks.

Commonwealth Bank acting executive general manager for retail products and customers, Clive van Horen says customers are increasingly looking to lock in a competitive rate, with some fixed rate terms at historic lows. 

“Some of our fixed home loan rates are at 20 year lows, so now is a great time for customers looking for a guaranteed rate across either the short to medium term.”