Variable home loan rates resume being cut: Canstar

Canstar’s website currently lists 210 loans with interest rates below 2 percent, showing renewed intense competition

Variable home loan rates resume being cut: Canstar
Variable home loan rates resume being cut: Canstar

CommBank has cut owner occupied variable rates by up to 0.40% and investment variable rates by 0.23%.

The larger cuts have been made on loan to value ratios of 70% or less.

Canstar advised it was the first time since September 2020 that CommBank has cut variable home loans rates.

The lowest variable rate available from CommBank is now 2.29%, which when compared to the other Big Four banks is only beaten by Westpac’s Flexi First Option Intro rate loan that has a rate of 1.99% for two years before reverting to 2.49% (2.42% comparison rate).

Fixed rates saw a range of movements including cuts to CommBank’s 1-year fixed rate of -0.10% for owner occupied loans and -0.20% for investment loans, and a 0.10% increase to 2-, 3- and 4-fixed rates for only owner occupied loans.

ING has also cut variable owner occupied rates for principal and interest repayments by up to -0.25%, along with increases of 0.05% for 2-year fixed owner occupied principal and interest rates and hikes of 0.20% for its 3-, 4- and 5-year fixed rates.

Canstar finance expert, Steve Mickenbecker said CommBank’s home loan interest rate changes are a sign of the times.

“Markets are expecting interest rate rises to be little more than two years away, and all of the rate cuts from home lenders in recent months have been to variable interest rates and one year fixed terms."

Canstar’s website currently lists 210 loans with interest rates below 2 percent, "showing just how intense competition is right now," he said.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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