Changes to Interest Rates on Home Loan and Investment Home Loan Products

Tuesday 2 August 2016

Today, Commonwealth Bank announced that we will be decreasing the interest rate for our standard variable rate home loans by 0.13% p.a. effective 19 August 2016.

Over the past two years, the official cash rate has decreased three times, and during this period Commonwealth Bank home loan customers who are owner occupiers have had cumulative savings of approximately $939 a year on an average loan of $350,000.

Full details of the changes are in the table below:

Product

New Rate

Change

Comparison Rate

Effective Date

(p.a.)

(p.a.)

(p.a.)

Variable Rate Owner Occupied Home Loans

 

 

 

 

Standard Variable Rate

5.22%

-0.13%

5.37%

19/08/2016

12 Month Discounted Variable Rate

4.52%

-0.13%

5.30%

19/08/2016

Base Variable Rate (Economiser)

4.76%

-0.13%

4.91%

19/08/2016

Base Variable Rate (3 Year Special Economiser)

3.91%

-0.13%

4.55%

19/08/2016

No Fee Variable Rate

4.52%

-0.13%

4.52%

19/08/2016

Extra Variable Rate (Reference Rate Only - Not for sale) 4.52%
-0.13%
N/A
19/08/2016

Extra Variable Rate

4.11%

-0.13%

4.22%

19/08/2016

Extra Variable Rate (2 Year Introductory Rate)

3.96%

-0.13%

4.44%

19/08/2016

Variable Rate Investment Home Loans

 

 

 

 

Investment Home Loan Standard Variable Rate

5.49%

-0.13%

5.63%

19/08/2016

Investment Home Loan 12 Month Discounted Variable Rate

4.79%

-0.13%

5.56%

19/08/2016

Investment Home Loan Base Variable Rate (Economiser)

5.03%

-0.13%

5.18%

19/08/2016

Investment Home Loan Base Variable Rate (3 Year Special Economiser)

4.11%

-0.13%

4.80%

19/08/2016

Investment Home Loan No Fee Variable Rate

4.79%

-0.13%

4.79%

19/08/2016

Investment Home Loan Extra Variable Rate (Reference Rate Only - Not for sale) 4.79% -0.13% N/A 19/08/2016

Investment Home Loan Extra Variable Rate

4.38%

-0.13%

4.49%

19/08/2016

Investment Home Loan Extra Variable Rate (2 Year Introductory Rate)

4.23%

-0.13%

4.71%

19/08/2016

Viridian Lines of Credit (VLOC)

 

 

 

 

VLOC - Residential Equity Rate

5.63%

-0.10%

N/A

19/08/2016

Equity Unlock Loan for Seniors

6.37%

-0.13%

6.45%

19/08/2016

MISA

 

 

 

 

MISA Standard Variable Rate

5.22%

-0.13%

N/A

19/08/2016

MISA – 12 Month Discounted Variable Rate

4.52%

-0.13%

N/A

19/08/2016

Investment Home Loan MISA Standard Variable Rate

5.49%

-0.13%

N/A

19/08/2016

Investment Home Loan MISA - 12 Month Discounted Variable Rate

4.79%

-0.13%

N/A

19/08/2016

Low Doc Home Loans

 

 

 

 

Low Doc Standard Variable Rate 5.52% -0.13% 5.66% 19/08/2016
Low Doc Base Variable Rate (Economiser) 5.06% -0.13% 5.21% 19/08/2016
Low Doc – Viridian Line of Credit
5.93% -0.10% N/A 19/08/2016

Low Doc Investment Home Loans

 

 

 

 

Investment Home Loan Low Doc Standard Variable Rate 5.79% -0.13% 5.93% 19/08/2016
Investment Home Loan Low Doc Base Variable Rate (Economiser) 5.33% -0.13% 5.48% 19/08/2016
Investment Home Loans Low Doc – Viridian Line of Credit 5.93% -0.10% N/A 19/08/2016
HomePath Owner Occupied Home Loans
       
HomePath Variable Rate (no longer available for sale) 4.52% -0.13% 4.52% 19/08/2016
HomePath Investment Home Loans        
HomePath Investment Home Loan Variable Rate (no longer available for sale) 4.79% -0.13% 4.79% 19/08/2016
Commonwealth Portfolio Loan        
CommSec Variable Rate 5.63% -0.10% N/A 19/08/2016

Important Information: Interest rate cut on variable rates effective 19/08/2016. Saving is calculated on a total home loan value of $350,000, over a 30 year term. Repayments reduced at customer request. Comparison rates calculated on a $150,000 secured loan over a 25 year term. WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. To be eligible for Wealth Package, you must have a current home loan or line of credit with an initial ‘total home lending balance’ of at least $150,000 when you apply for Wealth Package. The package can only be established under one individual’s name or in the name of a corporate entity. It cannot be established in joint names or in the name of a business or family investment trust. The current annual package fee is $395, and this will be debited to a nominated Commonwealth Bank transaction account or Commonwealth Bank Credit Card. Customers with Low Doc Loans are not eligible to apply for Wealth Package. Package benefits are only available while you have a current home loan or line of credit facility and have paid the annual package fee.

FAQs - Interest Rate Changes – August 2016

What was announced?

- The Reserve Bank of Australia (RBA) has reduced the cash rate by 0.25%pa to 1.50% p.a.

- Commonwealth Bank has responded to the RBA official cash rate reduction, and has today announced benefits for our home loan, savers, and small business customers.

- Commonwealth Bank has announced a reduction in interest rates on our variable home loan products by 0.13% per annum effective Friday 19 August 2016:

    - The owner-occupier Standard Variable Rate (SVR) will reduce by 0.13% p.a. to a record low 5.22% p.a.;

    - The Investment Home Loan Standard Variable Rate will reduce by 0.13% p.a. to 5.49% p.a.;

    - Variable interest rates for business home loan customers will reduce by 0.13% p.a.; and

    - Fixed rates will remain unchanged.

- Commonwealth Bank will increase interest rates on our one, two, and three year Term Deposit (TD) products effective Friday 19 August 2016:

    - 1-year TD – 3.00% p.a.

    - 2-year TD – 3.10% p.a.

    - 3-year TD – 3.20% p.a.

QUESTIONS

Why hasn’t Commonwealth Bank passed on the full RBA rate cut to its home loan customers?

- We have carefully considered the impact of the current environment and the needs of our borrowers and savers.  Given increased funding costs and capital requirements, today’s changes are designed to balance the needs of our customers and shareholders.

- The reduced Standard Variable Rate of 5.22% per annum on owner-occupier home loans represents the lowest SVR we have offered, and continues our commitment of providing value to our 1.5 million home loan customers.

Will my repayments be automatically reduced after Commonwealth Bank’s decision to lower the standard variable rate mortgage?

- Principal and interest loan repayments will not be automatically reduced. To reduce your repayments, you should contact 13 22 24 between 8am and 8pm, visit your nearest branch, or complete a ‘Change my loan repayment’ request in Netbank.

I am unsure if my home loan product remains appropriate for my needs.

- If you are unsure if your original home loan product remains the most appropriate for your needs, you can speak with one of our lenders who can conduct a Financial Health Check and assess the product(s) and options best suited for your needs.  To do this, please visit one of our branches or call us on 13 22 24. 

Will you be offering better deposit rates on your other savings products?

- We have responded with a market-leading increase to savings rates on our one, two, and three year term deposit products to recognise the importance of savings income for customers.  Term Deposits (TDs) are particularly important to help customers achieve their savings goals, and can also provide a steady source of income.

I would like further information. Who can I speak to?

- Please contact us for more information.  If you would like us to conduct a Financial Health Check for you to ensure that we are supporting you to achieve your financial goals. You can visit any Commonwealth Bank branch or call us on 13 22 24 for more information.