Changes to Variable Home Loan Interest Rates

Thursday 22 October 2015

The Commonwealth Bank has today announced an increase in its variable home loan rates by 0.15%pa (15 basis points), partially offsetting costs associated with recent changes to capital requirements. Fixed rates and business lending rates remain unchanged.

For home loan customers, the standard variable rate for owner occupied loans will increase to 5.60% per annum and the standard variable rate will rise for investment home loans to 5.87% per annum. The change is effective from Friday, 20 November 2015 for new and existing home loan customers.

Frequently Asked Questions 

1. Why has Commonwealth Bank announced changes to variable home loan interest rates today?

Commonwealth Bank is supportive of an Australian financial system that is strong, stable and competitive. We have recently raised $5.1 billion of capital to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry. We have now reviewed our home loan pricing in light of these changes.


2. What exactly is changing?

Variable rate home loan customers

If you have a variable rate home loan (either an owner-occupied or an investment home loan), the interest rate on your home loan account will increase by 0.15%pa effective 20 November 2015.

Fixed rate home loan customers

If you have a fixed rate home loan, your interest rate will remain fixed until the end of your initial fixed rate loan term. At this time, your interest rate will revert to a variable rate and will change to the relevant variable interest rate noted in your contract. This rate will have increased by 0.15%pa effective 20 November 2015 as the result of today’s announcement.


3. I’m thinking of switching to a fixed rate – what do I need to do?

Fixed rates can be a way to provide yourself with comfort that your loan repayments will not change. We are currently offering some very attractive fixed rates for customers wanting to lock in a fixed rate. We encourage you to speak with us by contacting your local branch or calling us on 13 22 24 if you would like more information.


4. What will happen to my repayments as the result of this announcement?

If you have a principle and interest (P&I) loan, we will automatically adjust your repayments if required to ensure they are meeting the Required Minimum Repayment Amount (RMRA). We will not make any changes to repayments if you are already making sufficient repayments to meet the new Required Minimum Repayment Amount.

If you have an interest only loan, we automatically adjust loan repayments up and down each month to ensure they cover the amount of interest charged. You will not have to do anything if you have an interest only loan.


5. I’m concerned about my ability to make repayments on my loan.  What should I do?

If you are worried about your ability to continue making payments on your loan, you can visit the Financial Difficulty section on this website at It contains information about financial difficulty options. It is important to contact us as soon as possible so that we can discuss your individual situation and assist you.


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

We encourage you to contact us for more information, or if you would like us to conduct a Financial Health Check for you to ensure that we are best supporting you to achieve your financial goals. You can drop into any Commonwealth Bank branch or call us on 13 22 24 for more information.