CBA cuts fixed home loan rates by up to 0.5%

CBA cuts fixed home loan rates by up to 0.5%
Staff reporterDecember 7, 2020

Australia’s largest bank, CBA, has today cut fixed rate home loans by up to 0.50 per cent.

Commonwealth Bank has slashed all its investment fixed rates, as well as its 1, 4 and 5 year fixed owner-occupier mortgage rates.

The biggest cuts are to the 4- and 5-year fixed investment interest-only loans, which have dropped by 0.50 per cent. research shows 30 lenders have cut fixed rates this year, including Suncorp, Westpac and Bankwest.

As a result of today’s changes, CBA now has the lowest 1-year fixed rate out of the big four banks and equal lowest 4- and 5-year fixed rate for owner-occupiers. research director Sally Tindall said the Commonwealth Bank was cutting fixed rates to stay competitive.

“With fixed rates now as low as 2.50 per cent, banks are being forced to take the knife to their home loan rates to attract new business,” she said.

“CBA’s decision to cut all investor fixed rates is a sign it wants them back on the books."

“Since the APRA caps on investors and interest-only lending have been scrapped, banks have been increasingly shaving investor rates."

“Although fixed rate cuts are often a sign of an imminent RBA cut, these latest changes could be more about CBA drumming up new business," she concluded.

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