Commonwealth Bank raises fixed rates again, this time by up to 50 bp

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For the second time in three weeks, Commonwealth Bank hiked fixed rates across home loans, lifting 2-year interest rates (OO, P&I) as much as 50 bp. This move follows the continued April trend of rate-hike fever, which has affected all four big banks.

The major bank also raised 3- and 4-year rates by 40 basis points and 5-year rates by 20 basis points. Rate hikes will affect both P&I and IO home loans for owner occupiers and investors.

RELATED: Why do investors pay more for a home loan?

The table below shows the new fixed rates on the CBA basic home loan for owner occupiers making P&I repayments.

CBA Fixed Rate Home Loan (OO, P&I) - 12 April 2022

TermIncreaseCurrent rate
1-year0 bp
3.14% p.a (4.57% p.a. comparison rate*)
2-year50 bp3.94% p.a. (4.59% p.a. comparison rate*)
3-year40 bp4.34% p.a. (4.64% p.a. comparison rate*)
4-year40 bp4.54% p.a. (4.70% p.a. comparison rate*)
5-year20 bp4.64% p.a. (4.74% p.a. comparison rate*)

These new rates now represent CBA’s lowest fixed rate home loan option. Comparing their lowest rates with the other Big Four, we can get an idea about where the latest changes place them among the pack.

Big Four fixed rate home loans comparison (OO, P&I) - 12 April 2022

BankLowest 2-year rateLowest 5-year rate
ANZ
3.39% p.a. (3.07% p.a. comparison rate*)
4.49% p.a. (3.60% p.a. comparison rate*)
NAB3.59% p.a. (4.48% p.a. comparison rate*)4.59% p.a. (4.68% p.a. comparison rate*)
Westpac3.44% p.a. (4.52% p.a. comparison rate*)4.79% p.a. (4.75% p.a. comparison rate*)
CommBank3.94% p.a. (4.59% p.a. comparison rate*)4.64% p.a. (4.74% p.a. comparison rate*)

After the Reserve Bank of Australia (RBA) abandoned its patient stance this month regarding a future rise in the official cash rate, lenders have been scrambling to boost rates back to pre-pandemic levels. 

While variable home loans have only seen modest hikes compared to surging fixed home loans, home-buyers may yet see further price jumps by the end of the year.

Given this latest surge, and the increasing frequency of rate hikes, now may be the perfect time to move on a home loan.

If you’re in the market for a home loan, head over to our fixed rate comparison tool to get started. 

We’ve also rounded up other property trends to watch out for in 2022, as well as a new guide to off-market buying for those seeking a competitive edge.

Compare fixed rate home loans - last updated 13 August 2022

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  • 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.

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  • 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.

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  • 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.

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    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.

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* 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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