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CBA, Westpac, ING cut home loan rates as RBA cash rate speculation increases

CBA, Westpac, ING cut home loan rates as RBA cash rate speculation increases

CBA, Westpac and ING have all cut variable rate home loan rates as speculation of an imminent RBA rate cut increases.

Commonwealth Bank today trimmed some rates across both owner-occupier and investment loans for new customers by up to 0.15 per cent. CBA’s lowest variable rate dropped 0.10 per cent to 2.69 per cent.

The country’s fifth largest lender, ING, also cut variable rates for new owner-occupier customers today by 0.10 per cent. ING’s lowest variable rate is now 2.49 per cent.

This comes as the second largest lander, Westpac, launched a 2.19 per cent introductory variable rate a week ago, that reverts to 2.69 per cent after two years.

Analysis from RateCity database shows:

  • 47 lenders cut new customer variable rates in the last two months.
  • 34 lenders cut fixed rates in the last two months.
  • Lowest variable rate is 1.89 per cent (60 per cent LVR).
  • Lowest 2- and 3-year fixed rates are 1.99 per cent.
  • 11 lenders offer rates below 2 per cent.

Sally Tindall, research director at RateCity said the RBA has been hinting at a cash rate cut since the middle of the year, but the move seems increasingly likely in the next few months.

“While a cash rate cut next month is on the cards,x the board may want to wait until the federal budget is out of the way,” she said.

“Home loan rates might be at record lows, but it’s unlikely we’ve hit the bottom just yet.

“The cuts by CBA and Westpac will force the rest of the home loan market to re-evaluate their pricing. As a result, we’re likely to see some lenders cut their new customer rates further.

“Low cost lenders can’t outdo the big four banks when it comes to marketing, so undercutting their rates is essential to attracting customers.

“At the end of the day this is great news for home-owners, who are in a position to refinance. This kind of competition can potentially put thousands of dollars back into their pockets.

“While the competition in the market is helping refinancers get ahead, complacent mortgage holders and savers are not benefitting from these cuts.

“Savings rates have been tumbling in recent months and if the RBA cuts again we’ll see even more accounts offer next to zero interest to Aussies trying to get ahead,” she said.

Big Four Bank lowest rates

LenderAdvertised variableAdvertised

2-yr fixed


3-yr fixed






2.19% for 2 years then 2.69%











Source: RateCity.com.au. Note: Rates are for owner occupiers paying principal and interest. *Westpac’s rates are for customers with a loan-to-value ratio of less than 70 per cent. Data accurate as of 25/09/2020.

Lowest owner-occupier rates on RateCity

LenderAdvertised rate
VariableReduce Home Loans


2-year fixedCommunity First Credit Union/Illawarra Credit Union


3-year fixedBank First/Hume Bank


5-year fixedVirgin Money


Source: RateCity.com.au. Note: Hume Bank rate is only available to new loans for renovation or construction of new properties within 150 km of Albury Post Office. Data accurate as of 25/09/2020.

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



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