Following the Reserve Bank of Australia’s (RBA) decision to decrease the official cash rate by 0.25% per annum (p.a.), CBA will decrease home loan variable interest rates by 0.25% p.a.
All home loan variable rate changes announced today will be effective 30 May 2025.
CBA’s Group Executive, Retail Banking Services, Angus Sullivan said: “Today’s decision will help to deliver some much-needed additional relief for many Australians with a mortgage.
“When combined with the February rate cut this change should free up some more cash flow for homeowners who need it. We know many have had tighter budgets in recent months and will welcome that additional flexibility.
“Today’s announcement of a 0.25% p.a. rate cut will help to deliver a monthly saving of approximately $80 for home loan customers making principal and interest repayments on an average loan size of $500,000. After two rate cuts many home loan customers will start to see a more meaningful change month to month.”
Following the February rate reduction, around 14 per cent of eligible1 customers reduced their direct debit repayments, with many others choosing to continue paying off their home loan at a slightly faster rate. Mr Sullivan said for those customers who would like to reduce their home loan direct debit following today’s rate cut announcement, they will be able to do so via the CommBank app or NetBank the day after the rate change is effective.
“We know homeowners like to manage their finances in line with their individual budgets and they can change their direct debits very simply via our digital channels,” he said.
Support for home loan customers
For our home loan customers we have a range of support options available that can help them navigate today’s change. These include:
- Estimating future home loan repayments via the home loan repayments calculator. You can also estimate the impact additional payments can make to your loan balance and duration.
- Changing the repayment amount and frequency of home loan payments. Eligible customers can reduce their mortgage repayments and align their repayment timing to when and how often they are paid via the CommBank app or NetBank.
A range of money management support and tools are also available in the CommBank app. These include:
- Spend Tracker in the CommBank app to help categorise your debit and credit card transactions, making it easier to see the impact your spending decisions have on your everyday finances.
- Category budgets to set weekly, fortnightly or monthly budgets for different categories of your spending – from entertainment to transport, eating out and shopping. You can see how your spending compares to the budget you set yourself, to help you stay on track.
