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

Home Loans 2020 - last updated 2 December 2023

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

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

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

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.


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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.