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Battle of the big banks: CBA cuts lowest variable rate following Westpac, NAB and ANZ

Battle of the big banks: CBA cuts lowest variable rate following Westpac, NAB and ANZ

Australia’s largest bank, CBA, has cut its lowest variable rate by 0.10 per cent to 2.19 per cent, as the big bank battle to win over new customers continues.

Westpac has also cut its lowest variable rate, while NAB cut on 9 March and ANZ on 8 February. Westpac has the lowest variable rate on offer out of the big four banks at 2.09 per cent.

The cuts from all four big banks are only for new customers on their basic variable rate loans.

Big four banks’ lowest variable rates for owner-occupiers

BankBasic variableMin LVR
CBA

2.19%

70%

Westpac

2.09%

70%

NAB

2.19%

80%

ANZ

2.19%

70%

Source: RateCity.com.au. Rates are for an owner-occupier paying principal and interest on the banks’ basic variable rate loans (no offset account). Loan-to-value ratios (LVRs) apply to these rates.

CBA has also today hiked its fixed rates for owner-occupier and investors for the third time this year.

The hikes of up to 0.30 per cent for owner-occupiers means CBA now only has one fixed rate under 3 per cent.

Today’s CBA home loan changes for owner-occupiers

Rate typeOld ratesNew rateDifference
Variable

2.29%

2.19%

-0.10%

1-yr fixed

2.79%

2.99%

+0.20%

2-yr fixed

2.99%

3.29%

+0.30%

3-yr fixed

3.49%

3.79%

+0.30%

4-yr fixed

3.69%

3.99%

+0.30%

5-yr fixed

3.99%

4.29%

+0.30%

Source: RateCity.com.au. Rates are for an owner-occupier paying principal and interest. LVR requirements may apply.

RateCity database analysis:

  • 5 lenders are offering 7 fixed rates under 2%
  • 35 lenders offering 67 variable rates under 2%.
  • 14 lenders have cut at least one variable rate in the last month, including CBA, Westpac and NAB.
  • 1.79% is the lowest variable rate on offer from 3 lenders.

RateCity.com.au research director, Sally Tindall, said: “Ultra-low fixed rates might have flown the coup, but the big four banks are still cutting their lowest variable rates.”

“The fact that Australia’s two largest banks have both cut variable rates within two days of each other may prompt other lenders to reassess their rates,” she said.

“There are currently 35 lenders offering variable rates under 2 per cent including mainstream banks like HSBC and Citi.

“There might be dozens of variable rates still under 2 per cent, however, none of these are likely to last long once the RBA starts hiking.

“Variable rate mortgage holders have a window of opportunity to get themselves a rate cut before the RBA makes its move.

“If your bank is offering a lower variable rate to new customers than what you’re on, get on the phone and haggle. A rate cut now, will help cushion the blow when variable rates do rise,” she said.

Lowest big four bank owner-occupier home loan rates

Rate typeCBAWestpacNABANZ
Variable

2.19%

2.09%

2.19%

2.19%

1-yr fixed

2.99%

2.99%

2.74%

2.69%

2-yr fixed

3.29%

3.19%

3.09%

3.09%

3-yr fixed

3.79%

3.74%

3.59%

3.59%

4-yr fixed

3.99%

3.99%

3.99%

3.99%

5-yr fixed

4.29%

4.29%

4.19%

4.19%

Note: Rates are for an owner-occupier paying principal and interest. LVR requirements may apply.

Lowest variable rates on RateCity.com.au

LenderAdvertised Rate
Reduce Home Loans

1.79%

Homestar Finance

1.79%

Pacific Mortgage Group

1.79%

Well Home Loans

1.82%

Freedom Lend

1.84%

Tic:Toc

1.89%

Athena Home Loans

1.89%

Police Credit Union

1.89%

Homeloans.com.au

1.89%

Note: Rates are for an owner-occupier paying principal and interest. LVR requirements may apply.

Lowest fixed rates on RateCity.com.au

Rate typeLenderAdvertised rate
1-yr fixedUnity Bank

1.84%

2-yr fixedGeelong Bank

1.99%

3-yr fixedGeelong Bank

2.39%

4-yr fixedSouthern Cross Credit Union

3.09%

5-yr fixedSouthern Cross Credit Union

3.19%

Note: Rates are for an owner-occupier paying principal and interest. LVR requirements may apply.

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This article was reviewed by Data Research Specialist Piyush Pillai before it was published as part of RateCity's Fact Check process.

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