Commonwealth Bank cuts new guaranteed home loan interest rate to 5.95% pa, with insurance bonus

2 February 2001

The Commonwealth Bank has announced a lower interest rate of 5.95% pa for its recently introduced one-year guaranteed rate home loan, cutting 0.25% from the previous rate of 6.2% pa. In another saving for borrowers the Bank has also retained its special bonus of up to $400 off the cost of home and/or contents insurance with Commonwealth Insurance Limited.

Both the new 5.95% pa one year guaranteed interest rate and the bonus $400 insurance premium saving are available from 5 February 2001, for new home and investment home loan customers.

The special one-year guaranteed interest rate of 5.95% pa is 2.12% below the standard variable rate and 1.00% pa lower than the Bank's standard one-year fixed interest rate (as at 5 February 2001).

General Manager, Cards and Personal Financing, Nick Kennett said: " As Australia's leading home loan lender, the Commonwealth Bank has taken advantage of falls in wholesale market rates to offer new customers a low 5.95% pa guaranteed introductory rate, with the security of knowing it will not change for a full twelve months. As well, we're still providing the bonus of up to $400 saving in insurance costs, to help our clients protect their property.

"The $400 saving can be applied to a building, contents or combined insurance policy, and customers can take it with the new 5.95% pa guaranteed rate loan or other fixed and variable rate home loans. Whichever combination they choose, valuable savings in home loan interest and insurance costs are available, making it both sensible and easy to have your home loan and insurance with the Commonwealth Bank," Mr Kennett said.

This reduction comes a week after the Commonwealth Bank led the industry's latest round of rate cuts when it sliced fixed interest rates by up to 0.3% pa, taking all the Bank's standard fixed home loan and investment loan rates to 7.00% pa or below. The Bank's variable home loan interest rates remain unchanged.