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Commonwealth Bank cuts variable & fixed home loan interest rates

20 October 2008

The Commonwealth Bank today announced that it was cutting rates on variable home loans and for the second time within a week, fixed rate home loan rates.

Variable rate home loan interest rates will be reduced by 0.21% pa.  This means that the Bank’s standard variable rate home loan will decrease from 8.53% pa to 8.32% pa and its basic variable home loan from 8.02% pa to 7.81% pa.

The new rates will be effective from 30 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

Change

Complete Home Loan Variable Rate

8.53%

8.32%

-0.21%

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

7.83%

7.62%

-0.21%

Economiser  (Base Variable Rate)

8.02%

7.81%

-0.21%

In addition, the Bank has announced it will again cut fixed rate home loans for new customers with rates to be reduced by up to 0.4% also effective 30 October 2008. Fixed rates have been already reduced by between 1.1% -1.45% in the last week and will decrease as follows:

Fixed Rate Product

 Old Rate % pa

New Rate % pa

Change

1 Year Guaranteed

7.09%

7.09%

N/A

1 Year Fixed

7.14%

7.14%

N/A

2 Year Fixed

7.14%

7.14%

N/A

3 Year Fixed

7.69%

7.29%

-0.40%

4 Year Fixed

7.69%

7.44%

-0.25%

5 Year Fixed

7.69%

7.49%

-0.20%

7 Year Fixed

7.99%

7.59%

-0.40%

10 Year Fixed

7.99%

7.59%

-0.40%

15 Year Fixed

7.99%

7.59%

-0.40%

Group Executive Retail Banking Services, Ross McEwan said, “We have seen some reduction in our cost of funding over the past week and 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.

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