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CBA hikes 2- and 4-year fixed rates

CBA hikes 2- and 4-year fixed rates

10 Aug, 2021 - 3 min read

Australia’s biggest bank, CBA, has today hiked its 2- and 4- year fixed rates by 0.05 per cent for owner-occupiers paying principal and interest.

Today’s rate changes from CBA - owner occupiers

	Old rate	New rate	Change
2-yr fixed	1.94%	1.99%	+0.05%
4-yr fixed	2.24%	2.29%	+0.05%

Note: the above rates are CBA’s lowest rates for owner occupiers paying principal and interest and are package rate loans with an annual fee of $395.

This is the third time CBA has hiked its 4-year fixed rate this year, and the first time the bank has hiked its 2-year rate for owner-occupiers.

Analysis of the RateCity.com.au database shows over the last two months, there have been more hikes than cuts in every fixed rate category with the exception of 1-year rates.

Lenders that have moved at least one fixed rate in the last 2 months

	Lenders that have cut	Lenders that have hiked
1 yr fixed	23	21
2 yr fixed	24	28
3 yr fixed	20	32
4 yr fixed	6	23
5 yr fixed	10	24

Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates.

RateCity.com.au research director, Sally Tindall, said CBA’s incremental hikes were starting to add up.

“While a 0.05 per cent hike isn’t much in the scheme of things, anyone who was planning to lock in one of these rates, but hadn’t, could be kicking themselves today,” she said.

“CBA is factoring in a rise in the cost of funding over the next couple of years, particularly now the RBA’s term funding facility has closed.”

A recent economic insights report from CBA shows around half of its new owner-occupier loans settled in June were fixed, with the two-year rate the most popular.

“Despite today’s hikes, CBA still has one rate under 2 per cent – the bank is not going to let go of that easily,” she said.

“CBA’s two-year rate was extremely competitive and attracting significant interest. By keeping it just under 2 per cent, the bank is trying to keep momentum going at a more sustainable price.

“Sixty-five lenders are offering at least one rate under 2 per cent. It’s a great marketing tool to get new customers in, particularly refinancers looking to lock in a fixed rate that starts with a ‘1’,” she said.

Lowest big four bank owner-occupier home loan rates

	CBA	Westpac	NAB	ANZ
1 yr fixed	2.09%	1.99%	2.09%	2.04%
2 yr fixed	1.99%	1.89%	1.99%	1.94%
3 yr fixed	2.19%	1.98%	2.08%	2.04%
4 yr fixed	2.29%	2.19%	2.24%	2.49%
5 yr fixed	2.99%	2.49%	2.49%	2.69%
Variable	2.69%	2.19% for 2 yrs then 2.69%	2.69%	2.72%

Source: RateCity.com.au. Note: Westpac's rates are for a loan to value ratio of up to 70%.

Disclaimer

This article is over two years old, last updated on August 10, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Product database updated 20 Apr, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Laine Gordon

Head of Public Relations

Laine Gordon is the Head of Public Relations at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.