Fixed rates cut to lowest since 1980s

16 March 2001

The Commonwealth Bank Group has cut its popular one-year guaranteed home loan rate to 5.59% and extended its nil establishment fee offer. In addition to this offer, the Group has cut its five year fixed home loan rate to 6.60% pa, the lowest rate in more than a decade.

The guaranteed rate has been cut by 0.36% to 5.59% pa while fixed rate home and investment home loan interest rates have been cut by up to 0.45% pa. All fixed rate loans are now at or below 6.60% pa.

The cuts mean the Commonwealth Bank Group now offers the lowest fixed rate home loans amongst the major banks. The new lower interest rates are effective for new loans from 19 March 2001.

General Manager Cards and Financing Products, Nick Kennett said the Bank had now reduced its fixed home loan rates five times within the last four months.

"The Bank's 5.59% guaranteed rate and nil establishment fee is a market leading offer and the 6.60% pa five year fixed rate is our lowest in more than 10 years. The four year fixed rate is also the lowest in the market," Mr Kennett said.

"This reflects the Commonwealth Bank Group's commitment to providing competitively priced home loans with truly flexible features, access and service which continue for the life of the loan," Mr Kennett said.

The changed home loan and investment home loan interest rates are:

New Rate Reduction on previous fixed rate
1 yr guaranteed rate 5.59% pa - 0.36% pa
1 yr fixed 6.40% pa - 0.45% pa
2 yr fixed 6.40% pa - 0.45% pa
3 yr fixed 6.50% pa - 0.19% pa
4 yr fixed 6.60% pa - 0.35% pa
5 yr fixed 6.60% pa - 0.35% pa

The Bank's other home loan interest rates remain unchanged, with the 12 month discount variable rate at 6.24% pa, the Economiser basic variable interest rate at 6.81% pa, and the standard variable interest rate at 7.32% pa.