“Today’s announcement means our SVR for Owner Occupied customers, with Principal and Interest repayments, will be one of the lowest on record.
“We will also be proactively contacting eligible home loan customers to notify them of the new variable rates. We encourage customers to take advantage of these record low interest rates and contact us to reduce their minimum repayment, which will put extra money in their account each month,” Mr Sullivan said.
For Owner Occupied customers paying Principal and Interest, the SVR has reduced by 0.82% p.a. since June 2019, which on a $400,000 home loan equates to a reduction in the minimum monthly repayment of $200 or an annual saving of $2400.
Support for home loan customers
Commonwealth Bank has announced a range of initiatives for home loan customers to support them when they need it most.
In February 2020, we announced Home Loan Compassionate Care, an Australian-first that will support new and existing Owner Occupied home loan customers by making their home loan repayments for around 12 months if the borrower, their spouse or dependant passes away or is diagnosed with a terminal illness.
In January 2020, to support our home loan customers directly impacted by the recent devastating bushfires we introduced a 0% p.a. interest rate available to these customers on their CBA Home and Investment loans for 12 months. This is in addition to a range of other assistance measures we have provided to support our customers in bushfire-affected communities.
CBA also announced late last year we would offer home loans under the Government’s First Home Loan Deposit Scheme. As Australia’s largest lender, we understand saving a deposit for a home can be challenging and we have been overwhelmed by the response from first homebuyers who have been able to purchase their first home with CBA since we started accepting applications in January 2020.
“These measures, in addition to today’s rate changes, will go a way to making a difference to the household budgets of our customers and it’s one way we’re supporting them and their families,” Mr Sullivan said.
Customers who have questions regarding today’s rate change are encouraged to speak to one of our home lending specialists in branch or over the phone.
The new variable rates will take effect on 24 March 2020 to ensure the changes are made accurately, safely and reliably to our technology systems and this timeframe is consistent with previous rate changes.