Commonwealth Bank has slashed fixed rates

The Commonwealth Bank of Australia has announced changes to its home-loan offerings for owner-occupiers and property investors, lowering their fixed mortgage rates by as much as 90 basis points (bps).

The bank's owner-occupier borrowers will enjoy lowered rates for principal-and-interest (P&I) and interest-only loans. P&I home-loans under the Wealth Package offer with a one-year fixed term now have an interest rate of 3.29%. Similar loans on a four-year fixed term have a rate of 3.49%.

Also read: Low mortgage rates could save Australia from recession

The biggest cut was for IO loans with five-year fixed term — the rate for this loan offer was reduced by 90bps to 4.14%.

CBA also reduced its rates for investor loans. A similar 90-basis point cut was introduced for the investor IO loan with a four-year fixed term, which now has a mortgage rate of 4.14%.

The tables below show the changes to CBA's fixed-rate offerings:

Commonwealth Bank’s Owner-Occupier Home Loans

P&I Home Loans

Fixed-rate Term

New Rate

One year

3.44%

Four years

3.64%

P&I Home Loans under Wealth Package

Fixed-rate Term

New Rate

One year

3.29%

Four years

3.49

IO Home Loans

Fixed-rate Term

New Rate

One year

4.04%

Three years

3.94%

Four years

4.14%

Five years

4.14%

IO Home Loans under Wealth Package

Fixed-rate Term

New Rate

One year

3.89%

Three years

3.79%

Four years

3.99%

Five years

3.99%

Commonwealth Bank’s Investor Home Loans

P&I Home Loans

Fixed-rate Term

New Rate

One year

3.79%

Two years

3.59%

Three years

3.79%

Four years

3.79%

Five years

3.79%

P&I Home Loans under Wealth Package

Fixed-rate Term

New Rate

One year

3.64%

Two years

3.44%

Three years

3.64%

Four years

3.64%

Five years

3.64%

IO Home Loans

Fixed-rate Term

New Rate

One year

4.04%

Two years

3.94%

Three years

3.94%

Four years

4.14%

Five years

4.14%

IO Home Loans under Wealth Package

Fixed-rate Term

New Rate

One year

3.89%

Two years

3.79%

Three years

3.79%

Four years

3.99%

Five years

3.99%

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