CommBank slugs investors with fixed rate hikes up to 0.50%

By Tom Watson ·

Commonwealth Bank has announced another sweeping range of rate increases, hiking its fixed rate home loans by as much as 0.50% across 14 fixed rate mortgages.

The changes, which come into effect for new customers today will hit investors the hardest - with a 0.50% increase on two to five year fixed rate interest-only loans, while one year fixed rate interest-only loans will rise by 0.25%.

Fixed term interest-only rates have also been raised for owner-occupiers, with a 0.25% increase on one-five year loans. Investors who take out a principal and interest fixed rate loan with the Commonwealth Bank will now be forced to shell out more, after the major lender raised two to five year rates by 0.25%.  

The only borrowers to escape the rate increases are new owner-occupiers planning to make principal and interest repayments, with rates unchanged.

This is the second time the Commonwealth Bank has increased home loan rates in the last month, following its earlier increases to variable home loan rates in March.

The latest rate rate hike flurry comes as a crackdown from APRA on interest-only investor lending is underway, and speculation over how the Federal Government will address the housing crisis in the May budget continues.

CBA fixed rate hikes: 

Investor interest-only changes

Investor principal and interest changes

Owner-occupier interest-only changes

If you’re looking for a lower mortgage rate outside of the big banks compare the best deals on the market by heading over to the Mozo home loan comparison hub.

Tom Watson
Finance journalist

Tom Watson is a financial journalist at Mozo and co-host of the Finance Burrito podcast, specialising in fintech, property and business banking. Whether it’s reporting on banking trends or uncovering the latest product innovations, Tom’s mission is to keep our readers up to date with breaking Australian financial news. His work is often sourced in the media and across social media channels. Tom has a degree in Journalism from the University of Technology, Sydney. He is also ASIC RG146 (Tier 2) certified for general advice.