Changes to variable home loan interest rates - September 2018

  • Commonwealth Bank of Australia has announced it will increase its variable home loan rates, following a sustained increase in funding costs. 
  • All variable home loan rates will increase by 15 basis points from Thursday 4 October 2018. 
  • For owner occupiers, the standard variable home loan rate will increase to 5.37% per annum for customers making Principal and Interest (P&I) repayments, and 5.92% per annum for customers making Interest Only (IO) payments.
  • For investors, the standard variable home loan rate will increase to 5.95% per annum for customers making P&I repayments, and 6.39% per annum for customers making IO payments. 
  • Viridian Line of Credit (VLOC) interest rates will increase by 15 basis points to 6.53% p.a.

Frequently asked questions

Why is Commonwealth Bank increasing all of its variable home loan interest rates?

  • We have made these changes after careful consideration. We are very conscious of the impact that increasing interest rates will have on our customers, however it is important that we price our home loan products in a way that reflects our underlying costs.
  • Over the past six months, we have seen funding costs increase significantly, driven primarily by a rise in the 90 day Bank Bill Swap Rate. These changes have increased the cost of providing loans to our customers.
  • For customers looking for more certainty around their mortgage repayments, we continue to offer a range of options that may be more suitable for their needs, including a suite of competitive fixed rate home loans.

Will my repayments automatically increase after Commonwealth Bank’s decision to increase variable home loan interest rates?

  • If you are making the minimum required monthly mortgage repayments, your direct debit repayments will automatically increase.
  • If you are making more than the minimum required monthly mortgage repayments, and the extra amount you are paying covers the increase in rates, your direct debit repayments will not change.
  • If you currently have a CommBank variable rate home loan, we will also notify you about the change to your repayments by mail and/or your regular NetBank statements.
  • If you are concerned about how these rate changes may affect you, please speak with one of our home lending specialists. They can review your home loan options free of charge, and ensure your arrangements remain appropriate for your circumstances.

What should I do if I am unsure if my home loan product remains appropriate for my needs?

If you are unsure if your home loan product remains the most appropriate for your needs, you can speak with one of our home lending specialists. They will review your home loan options free of charge, and ensure your arrangements remain appropriate for your circumstances. To do this, please visit one of our branches or call us on 13 2224

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

  • If you would like more information, please speak with one of our home lending specialists. You can call us on 13 2224, or visit your local branch.
  • If you are looking for more certainty around your mortgage repayments, we offer a range of fixed rate options that may better suit your needs. These include a 3.79% per annum 2 Year Fixed Rate for owner occupiers, with principal and interest repayments, on our Wealth Package.
  • For more information about all of our products and rates, download the Home Loan Interest Rates which we regularly update. We will update this page on Thursday 4 October to reflect the changes to our variable rate home loans.