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Commonwealth Bank reduces home loan interest rates by 0.10%

7 April, 2009: The Commonwealth Bank today announced that it will cut its standard variable home loan interest rate by 0.10% following the Reserve Bank of Australia’s cut to the official cash rate.  The Bank continues to offer one of the most competitive interest rates which prior to today's changes was 0.17% below most of our major bank competitors.

The new rates will be effective from 17 April 2009 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

5.74%

5.64%

-0.10%

Economiser

(Base Variable Rate)

5.23%

5.13%

-0.10%

 

Ross McEwan, Group Executive Retail Banking Services at the Commonwealth Bank said: 

“We are pleased to pass on another interest rate reduction to Commonwealth Bank customers despite the cost of funding remaining inflated.”

“The cost of wholesale funding remains extremely high and as old funding matures and is replaced at much higher rates our average cost of funding continues to rise. Intense price competition on term deposits is also lifting the cost of retail deposit funding versus the official cash rate.”

“We understand the importance of ensuring that in the current economic climate we support our home loan customers and pass on as much as we can with interest rate cuts,” Mr McEwan added.

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. 

 

ENDS

Media contact:

 

Steve Batten

Commonwealth Bank

Telephone: (02) 9378 2504

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