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

By Katherine O'Chee · · 4 min read
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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 5 December 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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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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