CBA has lifted fixed home loan rates again

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For the second time this month the Commonwealth Bank has announced increases to fixed interest rates on a number of its home loan products - this time by between 15 and 25 basis points.

Coming into effect this morning, the latest changes impact fixed rates on the Commonwealth Bank’s Fixed Rate Home Loan and Fixed Rate Home Loan (Wealth Package), meaning the lowest advertised fixed rates offered by the bank are as follows.

  • 1-year: Up 20bp to 2.79% p.a. (4.17% p.a. comparison rate*)
  • 2-year: Up 15bp to 2.99% p.a. (4.11% p.a. comparison rate*)
  • 3-year: Up 25bp to 3.49% p.a. (4.18% p.a. comparison rate*)
  • 4-year: Up 15bp to 3.69% p.a. (4.21% p.a. comparison rate*)
  • 5-year: Up 20bp to 3.99% p.a. (4.32% p.a. comparison rate*)

Note, the rates above are available to owner occupier borrowers with a loan-to-value ratio (LVR) below 95% on the Fixed Rate Home Loan (Wealth Package).

Today’s move from the bank comes just three weeks after its last fixed rate increase of 5-20 basis points, and it means that CBA has now lifted fixed home loan rates five times since November.  

Rather than being an outlier, the latest rate hike from the Commonwealth Bank is part of a larger wave of fixed rate increases, as almost all lenders being tracked in the Mozo database have lifted at least some fixed home loan rates in recent weeks and months.

As a result, the super low fixed rates of 2021 are fast disappearing in the rearview mirror.

While there were an abundance of 1, 2 and 3-year fixed rates (and even a few 4 and 5-year rates) starting with a ‘1’ on the market last year, those are almost all gone with the expectation of a handful of 1-year fixed rate offers.

The average fixed rates of loans being monitored in the Mozo database have also skyrocketed since bottoming out last year - particularly the averages for longer terms. Here’s a look at the changes over the past six months:

Average fixed rates (owner occupiers, <80% LVR) - Mozo database, 21 February, 2022

Aug 2021Feb 2022
1-year2.29%2.54%
2-year2.24%2.78%
3-year2.33%3.17%
4-year2.54%3.52%
5-year2.78%3.65%

And if the last few weeks are anything to go by with multiple increases from the likes of CBA and Westpac, fixed rates are likely to continue to head in one direction: up.

RELATED: Home loan rate check: How do ANZ, CBA, NAB and Westpac compare?

Interested in seeing how Commonwealth Bank’s new fixed rates compare to other offers on the market? Head on over to Mozo’s fixed rate comparison hub to compare home loans on offer from a range of Australian lenders, or to get comparing straight away check out some of the great deals in the table below.

Compare fixed rate home loans - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    4.49% p.a.
    fixed 1 year
    3.81% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Details
  • Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    4.03% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.

    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.55% p.a.
    fixed 1 year
    3.91% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2022.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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