19 March announcement

Following the reduction in the official cash rate by 0.25% p.a. on 19 March we are taking deliberate steps to further support parts of the economy most in need. In particular, we want to ensure that we help keep small businesses open so that they can keep Australians employed, and that we do everything we can to support households and older Australians.

In response to the RBA’s announcement we are:

Reducing Fixed Rates

Reducing by 0.70% p.a. to an all-time low interest rate of 2.29% p.a. for new 1, 2 and 3-year Fixed Rate home loan Owner Occupied customers paying Principal and Interest repayments with Wealth Package, effective from 30 March, with no change to variable rate home loans

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Increasing our 12-month Term Deposit rate

Increasing our 12-month Term Deposit rate to 1.70% p.a. effective from 20 March until 26 April inclusive, an increase of 0.60% p.a., for personal customers only.

Available only in branch for new and existing customers, or by calling 13 2221 for customers renewing an existing Term Deposit.

Reducing cash-linked small business loan rates

Reducing all small business loans that are linked to the cash rate by 1% p.a. effective from 3 April, in addition to a range of measures announced last week that are available to businesses facing difficulty.

Making changes to home loan repayments

Between 1 – 5 May 2020, we reduced home loan direct debit repayments to the required minimum for all eligible variable rate customers paying Principal and Interest.

This was a one-off change to help customers who may need access to additional cash flow.

You can view or change your repayment amount or make additional repayments at any time in NetBank or the CommBank app.

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Coronavirus support

In the current uncertainty surrounding coronavirus, the financial and personal wellbeing of our customers and people remains our priority. Visit our Coronavirus Support Page to see how we’re supporting customers in a variety of ways.

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Your questions answered

Why haven’t you passed on the cash rate cuts to variable rate home loan customers?

The changes announced on 19 March aim to further support the parts of the economy most in need, like small businesses that keep Australians employed.

We are increasing 12-month term deposit rates by 0.60% p.a. to 1.70% p.a. This allows all Australians – and especially older Australians who rely on their savings income – to earn a guaranteed return that is 1.45% p.a. above the cash rate. 

We are also reducing rates on business loans by 1% p.a. – this is in addition to the 0.25% p.a. reduction announced on 3 March, and will come into effect on 3 April – as well as continuing to offer a range of measures to provide further assistance to customers facing financial hardship.

Furthermore, Owner Occupier home loan customers paying Principal and Interest on variable rate under Wealth Package can fix to our lowest advertised rate ever – 2.29% p.a. fixed for 1, 2 and 3-year terms – which will allow many customers to reduce their repayments.

What else is Commonwealth Bank doing for its existing variable rate customers?

We will be reducing direct debit repayments for all eligible variable Principal and Interest home loan accounts to the minimum required from Friday 1 May. Customers who want to keep their current direct debit repayments will be able to change these back after 1 May using our self-service tools in NetBank and the CommBank website.

We will get in touch with impacted customers from mid-April to notify them of the change and provide them with further details.

Will I be eligible for the new Fixed Rates?

The new Fixed Rates will be available from 30 March for all new and existing Owner Occupied Wealth Package customers on Principal and Interest repayments taking out a Fixed Rate Home Loan with Wealth Package.

You can change your home loan to a fixed rate in just few minutes online. Simply log on to NetBank or the CommBank app and choose the loan you’d like to fix. 

What is Commonwealth Bank doing for its deposits customers?

We are increasing the 12-month Term Deposit Rate by 0.60% p.a. to 1.70% p.a.. This allows all Australians – and especially older Australians who rely on their savings income – to earn a guaranteed return that is 1.45% p.a. above the cash rate. This offer is available for all eligible new and existing CBA personal customers (not available for Business, Corporate, Institutional, or Government customers, or Trusts.) available from 20 March 2020 on balances from $5,000 to $2 million.

This offer is only available in Branch (for new and existing customers) or via our Call Centre (for renewals only).

I'm unable to pay my home loan and am experiencing financial hardship or am preparing for possible hardship. How can you help?

Our Financial Assistance Solutions team can provide support when you are unable to meet your CommBank credit card, personal loan or home loan payments by reducing or deferring your repayments. We also have tools and tips available to help you manage your money.

You can request assistance online in NetBank or call our Financial Assistance Solutions team on 13 3095 (8am - 9pm Monday to Friday, and 9am - 2pm on Saturday (Sydney/Melbourne time)). 

What is Commonwealth Bank doing for its business customers?

We are reducing rates on business loans by 1% p.a – this is in addition to the 0.25% p.a. reduction announced on 3 March – and will come into effect on 3 April.

As well as continuing to offer a range of measures to provide further assistance to customers facing financial hardship, including:

  • Waiving merchant terminal fees
  • Waiving redraw fees
  • Waiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts)
  • Waiving establishment fees and excess interest on Temporary Excess products
  • Deferring repayments on vehicle and equipment finance loans, and providing tailored restructuring options that meet individual customer needs

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

3 March announcement

Following the RBA's cash rate cut announcement on 3 March, we're reducing interest rates for customers with variable rate home loans by 0.25% p.a., effective from 24 March. 

  • Owner Occupied Principal and Interest variable rate home loans reduced by 0.25% p.a. 
  • Investor Principal and Interest variable rate home loans reduced by 0.25% p.a.
  • Owner Occupied Interest Only variable rate home loans reduced by 0.25% p.a. 
  • Investor Interest Only variable rate home loans reduced by 0.25% p.a. 

When making these changes to our rates we examined the important role we play in supporting the Australian economy and the unique set of circumstances facing the country.

We also recognised the importance of managing the business sustainably for the long term and balancing the needs of our borrowers and depositors. 

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

  • Changes to our interest rates announced on 3 March 2020 become effective on 24 March 2020.

    If you pay Principal and Interest

  • Your repayments will not automatically drop.
  • You may want to reduce the repayment to free up some cash. This can be completed by selecting Change my repayment in NetBank or the CommBank app.
  • To estimate how much your repayments will be after the effective date, use our CommBank Repayment Calculator.

    If you have an Interest Only home loan

  • There isn’t anything you need to do. The interest payable and the payment will automatically reduce with the rate.
  • View the current interest rate in Account information using NetBank or the CommBank app.

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