BREAKING NEWS: RBA holds cash rate at 4.35% in March 2024Learn more
RateCity.com.au
  1. Home
  2. Home Loans
  3. News
  4. CBA slashes basic home loan rates in a bid for new customers

CBA slashes basic home loan rates in a bid for new customers

Nick Bendel avatar
Nick Bendel
- 2 min read
CBA slashes basic home loan rates in a bid for new customers

Australia’s largest lender, Commonwealth Bank, has increased the discount on some of its lowest home loan rates, as competition heats up in a softening market.

Today, CBA has cut rates on its Extra Home Loan by up to 0.35 percentage points to 3.89 per cent for an owner-occupier paying principal and interest, and 3.79 per cent for those customers who also have more than 30 per cent equity in their loan.

CBA has also cut rates on its Extra Home Loan investor, interest-only, two- and four-year honeymoon rate products.

Sally Tindall, research director at RateCity.com.au, said CBA had finally accepted the need to put competitive rates on the table to get new customers on its books.

“Over the last few months, growth in CBA’s home loan books has been sluggish. This move today is designed to halt this worrying trend and get ‘ideal’ customers on to their books.

“This is a big win for consumers because now we have all four big banks playing at the pointy end of the home loan market,” she said.

“The catch, of course, is that you have to be a new customer to qualify.

“It’s a pretty unique time in home loans at the moment. If you live in the home you own and you’ve paid off more than 20 per cent of it, then you are in the driver’s seat when it comes to rates.

“Banks big and small are all desperate to win your business if you are willing to switch,” she said.

Lowest ongoing advertised variable home loan rates – big four banks

LenderInterest rate
NAB3.69%
CBAFrom 3.79%
ANZ3.81%
Westpac3.98%

CBA home loan changes

Extra home loan ongoing variable rate

ProductOld advertised rateNew advertised rateChange
Owner-occupier P&I (LVR 70% or less)4.14%3.79%-0.35%
Owner occupier P&I (LVR between 70% and 90%)4.14%3.89%-0.25%
Owner occupier, interest-only (LVR between 70% and 90%)4.76%4.51%-0.25%
Investor P&I (LVR 70% or less)4.59%4.09%-0.50%
Investor P&I (LVR between 70% and 90%)4.59%4.24%-0.35%

Investor interest-only (LVR 70% or less)

5.33%4.83%-0.50%
Investor interest-only (LVR between 70% and 90%)5.33%4.98%-0.35%

Disclaimer

This article is over two years old, last updated on October 23, 2018. 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.

Compare home loans in Australia

Product database updated 19 Mar, 2024

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