Major slashes fixed rates
2021-04-01
Commonwealth Bank has announced rate changes for its fixed-rate home and investment home loans.
The changes include:
- 20 bps reduction to 1.94% p.a. on new two-year fixed rate home loans for owner occupiers paying principal and interest in the Wealth Package. This is CBA’s lowest ever advertised home loan rate.
- 30 bps reduction to 2.39% p.a. on new three-year fixed rate home loans for Investors paying principal and interest in the Wealth Package. This is CBA’s lowest ever advertised investor rate.
Michael
Baumann, executive general manager for home buying at CBA, said 40% of the bank's
new customers choose to fix their loans to take advantage of the record-low
environment.
"These
changes allow homeowners and investors to take advantage of our lowest ever
fixed rates, adding to our already market leading home lending solutions
including the recently announced CommBank Green Loan," he said.
The
rate changes came with the launch of a new digital splitting tool for
customers. With the tool, eligible customers can now split their home loan in
NetBank and the CommBank app.
With
the tool, customers can select the portion of their loan and the term they
would like to fix and see in real-time how this splits changes their
repayments.
"We
have made it easier than ever for eligible customers to take advantage of the
new fixed rates announced today with the launch of this easy-to-use feature in
the CommBank app and NetBank. There is a limited understanding from customers
that they can split their loan and this new tool gives customers even more
control of their finances and the flexibility of redraw and offset,"
Baumann said.
hristina TRUONG report (as cited in Gerv Tacadena, 2021)*
*Tacadena, Gery (2021). Major slashes fixed rates. Your Mortgage, Sydney, 23 March. Available at: https://www.yourmortgage.com.au/mortgage-news/rate-watch-major-slashes-fixed-rates/276044/ (Accessed: 1 April 2021)