Emergency RBA cut: CommBank first big bank to slash fixed home loans and business loans

In a surprise move, Commonwealth Bank has announced a huge 0.70% cut across its 1, 2 and 3 year fixed home loans, just minutes after the RBA’s decision to bring down the official cash rate to an historic low of 0.25%. 

From May 1, CommBank’s fixed rate will sit at 2.29% for new owner occupiers making principal and interest repayments as well as existing variable home loan customers who switch to the fixed rate option. 

This means its 3-year fixed home loan will soon be the lowest in the Mozo database, overtaking current leaders Police Bank (2.39%) and AMP (2.49%). 

However, the big bank’s variable home loan rates will remain unchanged. 

In a statement released this afternoon, CommBank Chief Executive Officer, Matt Comyn said the decision comes in response to the recent coronavirus outbreak. 

“We understand the ongoing uncertainty as the nation responds to the challenges posed by the coronavirus,” he said. 

“Following today’s reduction in the official cash rate by 25bps 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.”

More financial relief for households and small businesses 

In addition, CommBank announced it will reduce repayments to the minimum for all existing variable home loan customers on principal and interest. Customers who wish to keep their existing repayments can opt out from May 1. 

According to the bank, this will free up $400 per month for each customer - or a total $3.6 billion to inject back into the Australian economy. 

CommBank will also increase 12-month term deposits by 60 basis points to 1.70%, effective from March 19 on balances from $5,000 up to $2 million. 

This will be available to all new and existing customers, and according to Comyn, “will especially benefit older Australians relying on their savings”. 

“It will ensure all Australians are now able to earn a return on their savings which is more than 1.45% higher than the official cash rate,” he said. 

Meanwhile for small business customers, CommBank will slash 100 basis points from all existing cash-linked small business loans, effective from 3 April. 

This builds on other CommBank measures introduced last week to support businesses facing financial difficulty in light of the coronavirus, including fee waivers and deterred repayments.

For more details on how various banks are supporting customers in need of financial support, check out our emergency coronavirus relief packages guide

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Last updated 8 February 2025 Important disclosures and comparison rate warning*
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Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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    Basic Home Loan

    • Fixed
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    • Principal & Interest
    • LVR<70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,855
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    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
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    Initial monthly repayment
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    OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
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    Comparison rate
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    Initial monthly repayment
    $2,995
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    • Fixed
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    • LVR <70%
    Interest rate
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    Fixed 2 years
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    Initial monthly repayment
    $2,855
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  • Promoted

    Basic Variable Home Loan

    • Owner Occupier
    • LVR <60%
    Interest rate
    6.13 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,040
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    Competitive interest rate. No ongoing monthly loan maintenance fees. You can redraw your repayments if you’re ahead. Choose to repay weekly, fortnightly, or monthly. Make extra payments without penalty, to pay off your home loan even faster.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,915
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    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • LVR<80%
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,915
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    Get repayment security with fixed rates from one to five years. Free extra repayments of up to $25,000 during the fixed rate period. Fix a portion of your loan and leave the rest variable. Choose to repay weekly, fortnightly, or monthly.

  • Promoted

    Intro Discounted Standard Variable Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.20 % p.a.
    Variable for 12 months and then 6.60% p.a.
    Comparison rate
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    Initial monthly repayment
    $3,191
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    Enjoy a discount of 0.40% p.a. applied for the first 12 months of the loan. No application, account or establishment fees to pay to help pay. Make additional repayments without being penalised. Other fees may apply. 20% deposit required.

  • Promoted

    Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $2,899
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    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

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And stay tuned for more details on which banks have slashed their home loan rates following the emergency RBA cut.


* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

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