Commonwealth Bank cuts home loan interest rates

7 October 2008

The Commonwealth Bank today announced that it was cutting its variable rate home loan interest rates by 0.80% pa.  This means that the Bank’s standard variable rate home loan will decrease from 9.33% pa to 8.53% pa and its basic variable home loan from 8.82% pa to 8.02% pa. 

The new rates will be effective from Monday, 13th October 2008 for new and existing customers.

Owner occupied and investment home loan interest rates will decrease as follows:


Old Rate % pa

New Rate % pa


Complete Home Loan Variable Rate




Complete Home Loan Variable Rate (for new loan of $250k or more within Wealth Package)





(Base Variable Rate)





Group Executive Retail Banking Services, Ross McEwan said, "We value our customers and are reducing rates as much as possible today given our current very high wholesale and offshore funding costs. While we are not reducing our variable home loan rates by as much as the RBA reduction, we do expect global financial markets to normalise over time and once that does occur we will be able to reduce rates by more than the RBA adjustments. Our customers can also expect out of cycle interest rate reductions.”

Mr McEwan said the Bank fully understands the pressures that interest rates have had on customers.

“In setting rates we are conscious of the need to balance the interests of our borrowers and depositors.”

“As Australia’s biggest lender, the Commonwealth Bank is committed to remaining extremely competitive in the mortgage market.”

Customers are encouraged to review their financial position and budgeting in light of the changes in interest rates to ensure that their arrangements remain appropriate for their circumstances.  Customers wishing to reduce their repayments to reflect the interest rate reduction or who are seeking some financial advice should contact their branch or our home loan hotline on 13 22 24.



Media contact:
Steve Batten, The Commonwealth Bank, Telephone: (02) 9378 2504