Commonwealth Bank of Australia (CBA) is reducing rates on interest-only investment loans and offering refinancing rebates in a bid to build market share during the peak spring real estate season.
The Sydney-based bank is targeting fixed-rate investor loans, a market segment that remains resilient despite attempts by regulators to cool it down. CBA is also trying to lure borrowers from other lenders with $1,250 rebates for investment and owner-occupier principal-and-interest home loans.
The bank is cutting owner-occupier principal-and-interest four- and five-year fixed home loans by 20 basis points to 4.19%. Meanwhile, investment interest-only four-year fixed-rate home loans will decrease by 10 basis points to 4.99%, and investment interest-only five-year fixed-rate loans will fall by 20 basis points to 4.99%.
CBA, which recently announced a $9.9bn full-year profit, slashed rates across an array of fixed interest-only and principal-and-interest loans over one, three, four, and five years.
Other lenders are expected to cut rates over the coming weeks in a bid to attract residential borrowers. Credit Union Australia (CUA), Suncorp, and Bankwest have cut rates or reduced mandatory deposits since the beginning of the month.
Collections: Mortgage News