CBA takes the axe to fixed rates



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Australia’s largest bank has today cut its fixed rate home loans, making it the last of the big four banks to adjust fixed rates since the RBA cash rate cut on July 2.

Today CBA dropped its 2-year fixed rate for owner-occupiers by 61 basis points to 3.18 per cent while the biggest cut was to its 5-year investor interest-only loan, which dropped by 80 basis points to 4.19 per cent.

CBA fixed rate changes – owner-occupier, principal and interest

Fixed rate

Rate %

Change %

2 Year Fixed Rate

3.18

-0.61

3 Year Fixed Rate

3.28

-0.51

5 Year Fixed Rate

3.49

-0.60

For a full list of CBA changes, contact us.

In total, almost 50 lenders on RateCity.com.au’s database have lowered fixed rates this month as speculation of further rate cuts continues to mount.

On Wednesday, ANZ cut fixed rates by up to 0.96 per cent, while earlier this month NAB cut by 0.80 per cent and Westpac by 0.70 per cent.

Big four bank lowest fixed home loan rates

Major banks

2-year

3-year

5-year

CBA

3.18%

3.28%

3.49%

Westpac

3.18%

3.28%

3.49%*

NAB

3.09%*

3.29%

3.59%

ANZ

3.18%

3.28%

3.53%

Advertised rates are for owner occupiers paying principal and interest. *First home buyer specials.

RateCity.com.au research director Sally Tindall said while CBA was playing catch up with its fixed rates, the move could cause some lenders to drop their rates further to remain competitive.

“Today’s cuts from Australia’s largest home loan provider are likely to prompt a lot of lenders to review their fixed rates.

“As a result, we expect to see an increasing number of fixed rates fall below 3 per cent, especially with at least one, if not two more RBA cuts on the cards.

“Some of the biggest cuts are to four and five year fixed rates. It looks like lenders agree with the RBA that low rates are here to stay,” she said.

Current lowest fixed rates on RateCity.com.au

1 year

Company

Advertised rate

Greater Bank

2.79%

UBank

2.99%

HSBC

3.19%

Macquarie Bank

3.19%

2 year

Company

Advertised rate

Mortgage House

2.96%

Reduce Home Loans

2.97%

Tic Toc

2.99%

Greater Bank

2.99%

3 year

Company

Advertised rate

Reduce Home Loans

2.97%

Greater Bank

2.99%

BOQ

2.99%

Freedom Lend

2.99%

5 year

Company

Advertised rate

Ubank

3.19%

Greater Bank

3.39%

Macquarie Bank

3.39%

Westpac

3.49%

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