Commonwealth Bank reduces interest rate for 1 Year Fixed home loans to 5.99%*


The Commonwealth Bank today announced that it was reducing its interest rate on 1 Year Fixed and 1 Year Guaranteed Rate home loans by 0.45% p.a.

This is good news for Commonwealth Bank home loan customers and is the Bank’s eighth rate cut to its fixed rate home loans since 1 August 2008.

Group Executive Retail Banking Services, Ross McEwan said, "We value our customers and are reducing rates as much as possible today given our current very high wholesale and offshore funding costs.”

Ross said the Bank fully understands the pressures that interest rates have had on customers.

“As Australia’s largest lender, we are committed to remaining extremely competitive in the mortgage market and will continue to find the right balance with our interest rates for customers and shareholders.”

Today’s move means that the Bank’s 1 Year Fixed Rate as part of a Wealth Package will decrease from 6.44% to 5.99% and its 1 Year Guaranteed Rate will decrease from 6.59% to 6.14%.

The new rates will be effective from Monday 24 November 2008 for new and existing customers.

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 who are seeking some financial advice should contact their branch or our home loan hotline on 13 22 24.

*Applicable to new 1 Year Fixed Rate Home Loans and Investment Home Loans as part of a Wealth Package.