The Commonwealth Bank has announced its full rate cut of 25 basis points, following the Reserve Bank of Australia’s move this week.
Effective 20 February, Commonwealth Bank customers will enjoy a reduced Standard Variable rate (SVR) of 0.25% as well as for products like the three and five-year fixed rate home loans which will sit at 0.25% and 0.30, respectively.
The new SVR rate, 5.65%, is the lowest the bank has offered since 2009. Commonwealth’s fixed rates are also at their lowest levels.
“Our new reduced standard variable rate of 5.65% is the lowest we have offered in five years, but beyond price, we are committed to ensuring our customers have the right tools, support and advice that will give them the best home buying experience,” said Matt Comyn, group executive on Retail Banking Services.
The bank further claims that by cutting the SVR by 0.25%, home owners will save $48 a month, based on the average mortgage of $300,000.
To discover how the new rate will impact your home loan, click here.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan