Changes to variable home loan interest rates effective 22 October 2019

  • Owner Occupied Principal and Interest Standard Variable Rate home loans reduced by 0.13% per annum (p.a) to a new record low rate of 4.80% p.a.
  • Investor Principal and Interest Standard Variable Rate home loans reduced by 0.13% p.a. to 5.38% p.a.
  • Owner Occupied Interest Only Standard Variable Rate home loans reduced by 0.13% p.a. to 5.29% p.a.
  • Investor Interest Only Standard Variable Rate home loans reduced by 0.25% p.a. to 5.64% p.a.

New Fixed Rates effective 3 October

We are also announcing a new 2.99% p.a. 2 and 3 year Owner Occupied Principal and Interest Fixed Rate, available to new and existing Wealth Package customers taking out a Fixed Rate loan.

Frequently asked questions

Why is Commonwealth Bank decreasing its Standard Variable Home Loan interest rates?

  • Commonwealth Bank has responded to the Reserve Bank of Australia’s (RBA) cash rate decision by announcing a reduction in its Standard Variable Rates for home loan customers by between 0.13% p.a. and 0.25% p.a.
  • Today’s announcement means our Standard Variable Rate (SVR) for Owner Occupied customers, with Principal and Interest repayments, will be at record low levels.
  • As the Reserve Bank cash rate has reached record lows, we face a difficult balancing act between the multiple, valid interests of our stakeholders. Particularly given it is currently not feasible to pass on the full rate reduction to over $160 billion of our deposits which are at, or near, zero rates.
  • In balancing these interests, we have carefully considered how to best meet the needs of over 6 million savings customers – who may find it challenging to make ends meet with record low savings interest rates – with the needs of our 1.6 million home loan customers, who want to pay less on their mortgages; and the needs of our shareholders, many of whom are retirees who rely on our dividend.

Will my repayments automatically drop after Commonwealth Bank’s decision to decrease Variable Home Loan interest rates?

Changes to our interest rates become effective on 22 October 2019. From this date repayment options will depend on the home loan repayment type.

If you pay Principal and Interest

  • Leave the repayments as they are and be on track to pay off your loan sooner.
  • 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.

Will I be eligible for the new Fixed Rates?

The new 2 & 3 year Fixed Rates are available from 3 October for all new and existing Owner Occupied Wealth Package customers on Principal and Interest repayments taking out a Fixed Rate Home Loan.

Will the interest rate on my Extra Home Loan decrease?

Yes. Our Extra Home Loan will decrease in line with our Standard Variable Rate.

Will the interest rate on my Viridian Line of Credit decrease?

No. The interest rate on our Viridian Line of Credit will not change.

What is Commonwealth Bank doing for its deposits customers?

In this environment, while reducing the SVR for home loan customers by between 0.13% and 0.25%, we have also decided to limit the base rate reduction for savings customers in our popular NetBank Saver product to 0.05%p.a. effective 4 October.  These changes are in addition to the fee removals, fee reductions and pre-emptive fee alerts we have already introduced, which have helped save our customers over $415 million.

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

  • If you would like more information, make sure you speak with one of our home lending specialists. You can call us on 13 22 24, or visit your local branch.
  • For more information about all of our products and rates, visit the Home Loan Interest Rates page on our website. This page is regularly updated and will be updated again on Tuesday 22 October 2019 to reflect the changes to our variable rate home loans.