After posting a massive full year profit of $9.93 billion, the Commonwealth Bank has today significantly cut rates on it’s fixed home loan package, bringing it in line with other major lenders.
Owner occupiers taking out a CBA Wealth Package with a fixed rate term from 1-5 years will benefit from rate cuts as high as 0.40%, while investors may have come out as the real winners, with investment loans being cut by up to 0.55%.CBA Wealth Package - fixed rate changes
- Owner-occupier loans with principal and interest repayments saw a reduction of 0.40% on 1 year fixed terms, 0.10% on 3 year terms and 0.20% on 5 year terms
- Owner-occupier loans with interest-only repayments saw a reduction of 0.15% on 1 year fixed terms
- Investment loans with principal and interest repayments were reduced by 0.40% on 1 year fixed terms, 0.30% on 3 year fixed terms, 0.35% on 4 year terms and 0.55% on 5 year fixed terms
- Investment loans with interest-only repayments were cut by 0.15% on 1 year terms, 0.30% on 3 years terms and 0.10% on 5 year terms
Although the rate cuts were relatively generous for a major bank, Mozo Data Manager Peter Marshall pointed out that CBA’s fixed rates are still no lower than any of the other big four.
“These are certainly significant cuts from a big bank, but borrowers shouldn’t get too excited. Really, these changes just bring CommBank in line with the other three major banks,” he said.
Big bank owner-occupier P&I fixed rates
The changes come just after CommBank posted a bumper full-year profit of $9.93 billion, a 7.6% rise from last year.
“The changes only affect new lending, so they won’t make a big impact to the bank’s bottom line, but with a profit like this, CBA was clearly in a good position to cut borrowers some slack,” Marshall said.
CBA’s profit announcement also showed that its new lending growth was within the regulatory speed limits set out by APRA.
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