How CommBank’s recent home loan rate cuts measure up

Customers outside of Commonwealth Bank

CommBank reduced interest rates for borrowers on its Extra Home Loan and CommBank Wealth Package recently, positioning these loans more favourably against the averages in the Mozo database.

The bank’s Extra Home Loan saw cuts of up to 35 basis points (bp), which places its variable loan for owner occupiers well below the average in our database. More on that in a moment. 

CommBank Extra Home Loan 60% LVR 

The lowest rate available on this loan is on a 60% loan-to-value ratio and is now 6.44% p.a. (6.45% comparison rate*), down 15bp, as per Mozo data.

This puts CommBank in pretty good stead among the home lending competition generally (for 60% LVR). 

CommBank Wealth Package 60% LVR

Variable rates under the CommBank Wealth Package are down by similar amounts and now start from 6.34% p.a on 60% LVR (6.72% comparison rate*).

Keep in mind that the average rate for an owner-occupier (P&I) $400,000 variable home loan with 60% LVR is 6.71% p.a., as per the Mozo database as at September 4, 2024.

CommBank Wealth Package  80% LVR 

Meanwhile, the rate on an 80% LVR for the CommBank Wealth Package is 6.49% p.a. (6.87% p.a. comparison rate). 

This is especially notable given that the home loan average for owner occupiers (P&I) on an 80% LVR is 6.79% p.a., as per the Mozo database as at September 4, 2024. 

CBA expects interest rate cuts

CommBank hasn’t typically offered home loans at the cheaper end of the spectrum but it appears to be making a push for more home buyers ahead of a potential interest rate cut by the Reserve Bank this year. 

That at least is the speculation of some experts, including those from the big four bank itself. 

In its August Market Outlook, CommBank’s chief investment officer Jason Todd said the bank expects “a gradual economic recovery alongside further inflation deceleration and modest rate cuts.” 

Other banking experts haven’t been so convinced of a coming rate cut in 2024.

Home loan rates on the lower side

Meanwhile, some of the cheaper variable home loans in the Mozo database as of September 4 include:

Fixed home loan rate cutters

Fixed rates are clearly heading down now with more lenders starting to cut across all terms, including two of the major banks (CBA and Westpac) and some leading second-tier banks (such as Macquarie Bank and HSBC).

Among the cutters, CommBank reduced fixed rates for owner occupiers making principal and interest repayments down 20bp for 1 year, 55bp for 2 years, 70bp for 3 years and 40bp for 4 years. 

Rates for other borrower types saw smaller reductions. 

As at September 4, 2024, the average on a fixed rate $400,000 owner-occupier home loan (80% LVR) from the big four banks is 6.49% p.a., on a 1 year term. The average rate will vary based on the term of the loan.

You can compare some of the leading home loan rates on Mozo’s Home Loan hub page or simply start with the table below. 

*Variable and fixed home loan rates mentioned in this article are based on a $400,000 home loan. 

Note: The comparison rate gives you the ‘true’ cost of a loan by combining the interest rate and any additional fees or charges into a single percentage rate. This makes it easier to compare loans from different lenders.

Last updated 4 April 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
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Promoted

    Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • Free extra repayments
    • Easy redraw facility
    • No annual fee to pay
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
  • Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No application, ongoing or monthly fees
    • Make additional repayments at any time
    • Access your money via internet banking at any time
  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No ongoing annual fees
    • Pre-approval valid for 3 months
Showing 8 results from 415 home loans. Use the filters to see more

* 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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