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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 22 August 2025.

Speaking of the change Angus Sullivan, CBA’s Retail Group Executive, said “With now three rate cuts this year, Australian borrowers are getting some breathing room back in their budgets. It will be very welcome for those with a home loan."

“We can see people are responding to lower interest rates in different ways - some are covering everyday costs a little more comfortably, others are getting ahead on their home loans.”

“We want to make it as easy as possible for our customers to take advantage of the cut in the way that makes sense for them. Tools like our Mortgage Repayment Calculator show you the difference an extra repayment can make. They’re easily accessible in the CommBank app and NetBank.”

CBA data shows that following today’s rate cut announcement, along with 0.25% p.a. reductions in both February and May, customers could be hundreds of dollars better off each month.

Loan amount

Combined monthly savings following three 0.25% p.a. rate cuts1

$500,000

$240

$600,000

$289

$700,000

$337

$800,000

$385

$900,000

$433

$1,000,000

$481

Eligible customers will soon be notified via the CommBank app, NetBank or email that they have the option to reduce their direct debit repayments. From the day following the effective date, customers can easily make adjustments through our digital channels. Their updated minimum required repayment amount will also be visible in their home loan account from that same day.

For people looking to enter the property market, today’s interest rate cut announcement also means their borrowing power may have increased.

CBA’s lowest advertised variable rate for new owner-occupied home loans2 will be 5.34% p.a. (comparison rate 5.47% p.a.*), available through our Digi Home Loan from 22 August 2025.

“We know millions of customers are digitally active and they log into our app more than 12 million times a day. Our Digi Home Loan allows tech-savvy home buyers to easily apply for a loan in minutes, through a fully digital application process,” Mr Sullivan 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.

Go to CBA Newsroom for the latest news and announcements from Commonwealth Bank.

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Things you should know

  • 1Based on a <60% LVR principal and interest owner occupier 30-year home loan with a standard variable rate. Rates and figures for illustration only, your interest rate may differ. This guide is information only and should not be relied on as financial advice.

    2 Digi Home Loan (Owner Occupied Principal & Interest) for new borrowings with a Loan to Value ratio of 60% or less. Minimum new borrowings of $100,000.

     *Comparison rate calculated on a $150,000 secured loan over a 25-year term. WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

    Media releases are prepared without considering an individual reader’s objectives, financial situation or needs. Readers should consider the appropriateness to their circumstances. Visit Important Information to access Product Disclosure Statements or Terms and Conditions which are currently available electronically for products of the Commonwealth Bank Group, along with the relevant Financial Services Guide. Target Market Determinations are available here. Loan applications are subject to credit approval. Interest rates are correct at the time they are published and are subject to change. Fees and charges may apply.