CommBank slashes fixed home loan rates after posting bumper $9.93 billion profit
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
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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.
If you like the security of knowing exactly what your monthly home loan repayment will be, a low fixed rate mortgage might be right for you. Head over to our fixed rate comparison table to find some of the best offers around.
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