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CBA to lift rate on 3-year fixed mortgages in addition to variable hikes
CBA, Australia’s largest bank, will be increasing the rate on its 3-year fixed mortgages, for both owner-occupiers and investors by 0.30 percentage points, effective in two days’ time (17 November).
The hike will apply to home loans paying both principal and interest, and interest-only. It does not affect customers already on a fixed rate.
This increase will take effect at the same time CBA’s variable mortgages are set to rise by 0.25 percentage points, as a result of November’s cash rate increase.
Change to CBA’s lowest 3-year fixed rate, effective 17 November
For owner-occupiers paying principal & interest
| Old Rate | New Rate | Change %-pts |
| 6.29% | 6.59% | +0.30 |
Source: RateCity.com.au. Note: CBA’s Wealth Package loan includes a $395 annual fee.
RateCity.com.au database shows fixed rate hikes back in fashion
CBA is one of 33 lenders that have hiked fixed rates in the last 30 days, in what has been a significant upwards shift to fixed rate prices across the market.
For example, in the last month 29 lenders have increased at least one 3-year fixed rate, while just four lenders have cut their 3-year fixed rate.
| Fixed term | Lenders that have cut | Lenders that have hiked |
| 1-yr | 4 | 32 |
| 2-yr | 6 | 27 |
| 3-yr | 4 | 29 |
| 4-yr | 0 | 17 |
| 5-yr | 4 | 21 |
Source: RateCity.com.au
When effective this Friday, CBA will have the highest fixed rates out of the big four, on its 2- and 3-year terms, and equal highest on its 1-, 4-, and 5-year terms.
Big four banks’ lowest advertised fixed rates, effective 17 November
| Loan term | CBA | Westpac | NAB | ANZ |
| 1-yr | 6.59% | 6.49% | 6.59% | 6.69% |
| 2-yr | 6.84% | 6.39% | 6.34% | 6.54% |
| 3-yr | 6.59% | 6.39% | 6.39% | 6.59% |
| 4-yr | 6.69% | 6.39% | 6.69% | 6.74% |
| 5-yr | 6.69% | 6.69% | 6.69% | 6.84% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal & interest. LVR requirements apply.
Lowest fixed rates on RateCity.com.au database
| Term | Rate | Lender |
| 1-yr | 5.50% | Abal Bank |
| 2-yr | 5.63% | Australian Mutual Bank |
| 3-yr | 5.48% | Australian Mutual Bank |
| 4-yr | 5.84% | Qudos Bank |
| 5-yr | 5.39% | RACQ |
Source: RateCity.com.au Rates are for owner-occupiers paying principal & interest. LVR requirements apply.
RateCity.com.au research director, Sally Tindall, said: “CBA has announced it’s increasing its 3-year fixed rates at the same time its variable rates are on the rise as a result of the November RBA hike.”
“With just 4 per cent of new and refinanced loans opting for a fixed rate, and a question mark over how long the cost of wholesale funding will remain elevated, the move is entirely unsurprising,” she said.
“Over the last month we have seen a significant shift north in prices across all loan terms as banks move to protect their profit margins in an uncertain environment.
“Right now, people aren’t rushing to fix their home loan for 3 years, so there’s no real point in posting competitive rates.
“That said, anyone wedded to fixing their rate should do their due diligence and shop around.
“After this hike takes effect, the difference between CBA’s lowest advertised 3-year rate and the lowest rate on the market will be 1.11 percentage points.
“On a $500,000 loan with 25 years remaining, that’s a difference of $340 to a customer’s monthly repayments,” she said.
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Product database updated 09 May, 2024
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