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Commonwealth Bank reduces home loan interest rates by 1.00%

Maintaining its position of offering the lowest interest rate available amongst the major banks

The Commonwealth Bank today announced that it will cut its standard variable home loan interest rate by 1.00% following the Reserve Bank of Australia’s cut to the official cash rate.  The Bank’s new standard variable rate of 5.74% p.a. maintains its position of offering its customers the lowest interest rate available among the major banks, a position it has held for much of the last 12 months.

The new rates will be effective from 13 February 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

6.74%

5.74%

-1.00%

Complete Home Loan

Variable Rate (with Wealth Package for new loans of $250K or more)

6.04%

5.04%

-1.00%

Economiser

(Base Variable Rate)

6.23%

5.23%

-1.00%

 

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

“We are pleased to announce that Commonwealth Bank customers will benefit from the full interest rate cut on all variable home loan rates.”

“However, as the world economic crisis continues and the current pressure remains on funding costs, any future changes in interest rates will need to reflect these higher costs of funds.  On this basis, we may not be able to pass on in full any future interest rate cuts.”

“We understand the importance of ensuring that in the current economic climate we support our home loan customers.  We are committed to ensuring that our customers receive competitive home loan products,” 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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