The RBA monetary policy board cut the cash rate by 25 basis points to 3.60% on Tuesday and CommBank quickly vowed to pass the savings into mortgage borrowers.
The move is aligned with CommBank's previous pattern, with the bank having passed both the February and May cut on in full 10 days after they were announced.
A 25-basis point cut would assumably see the lowest variable rate in CommBank's stable – its Digi Home Loan product – fall from 5.59% p.a. to 5.34% p.a.
For a borrower with a $650,000 mortgage, that change could result in more than $100 of monthly savings.
Moreover, the combined February, May, and August cuts could have seen the monthly repayments on such a mortgage fall from $3,935 to $3,625 – a saving of more than $3,700 a year.
"With now three rate cuts this year, Australian borrowers are getting some breathing room back in their budgets," CommBank retail banking services executive Angus Sullivan said.
"We can see people are responding to lower interest rates in different ways - some are covering everyday costs a little more comfortably, others are getting ahead on their home loans."
Both owner-occupiers and investors holding variable rate mortgages are set to benefit from today's announcement.
CommBank was the first major cab off the rank, announcing its intent to pass on the cut ahead of its big four peers, Westpac, NAB, and ANZ but in the dust of fellow major Macquarie Bank.
What could a rate cut mean for your wallet? Mortgage Repayment Calculator
Historically, CommBank subsidiary BankWest has reduced variable rates in line with its parent company, while digital brand Unloan typically moves faster.
It's important to note, however, CommBank customers won't automatically realise lower repayments on the back of a rate cut.
Unless borrowers request to reduce their repayments to match their new interest rate, which they can do through the bank's channels, they'll find themselves making extra repayments.
Extra repayments can help a homeowner to repay their mortgage faster, saving them interest, and any funds over the required repayment amount may be accessible via a redraw facility.
Though, borrowers hoping to bolster their budgets might prefer to realise their savings now.
See how other lenders are responding to the RBA's August rate cut: Your Mortgage live coverage
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