CBA cuts three-year fixed rates to 4.94%

The Commonwealth Bank has cut mortgage rates on its most popular home loan term, three-year fixed mortgage rates.

The country's biggest home loan lender cut its three-year rate by 15 basis points to 4.94%, equalling NAB and ANZ.

The CBA has also cut its less four-year rate by 50 basis points to 5.09% after cutting its five-year fixed rates to a record low last month.

Since the bank rate cuts last month, the share of new mortgage customers taking out a fixed rate loan had increased from 13% to around 20%. 

The CBA has record numbers locking in the five-year fixed rate loan at 4.99%.

All big four - and smaller lenders - reduced their five-year fixed mortgage rates last month to record lows below 5%, with a high impact on the market as borrowers seek to lock in low rates.

Westpac's head of home ownership, Melanie Evans noted new loans with a fixed element had moved up to 30%, from 15%-20% prior.