Major slashes fixed rates
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)