This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about Home Loans from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers, for further details refer to our FSCG. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a Home Loan, you will deal directly with a financial institution, and not with RateCity.

CBA cuts interest rates on ‘no-fee’ loan

July 1, 2011

In a bid to increase its share of the flagging mortgage market, the Commonwealth Bank has reduced the interest rate on its ‘no fee’ home loan from 7.24 to 7.11 percent. The discounted rate will save mortgage holders around $27 per month on average and will be automatically applied to all existing no-fee loan customers. The no-fee loan is free of monthly and annual fees and charges but does not provide for a split loan.

The increased discount on the variable rate loan is thought to be a further swipe at National Australia Bank’s highly successful ‘break-up’ campaign. When NAB announced it would pay the exit fees for Westpac home loan customers who were willing to jump across, the CBA went on the offensive and offered existing NAB customers $1200 cash to bring their business to the CBA.

The CBA’s interest rate comes on the heels of recent data from the Australian Bureau of Statistics which shows that, in the last five months, the banking industry passed the $1 trillion mark in the amount of money lent for new and existing home loans. This time last year, according to figures from the Australian Bankers Association, the value of loans held by the banks stood at $959.3 million and by April this year had risen to $1.02 trillion.

Related mortgage links

See all Mortgage News and Features

Previous Story
$7000 'tree change' grant

Next Story
Aussies look abroad for new mortgage model