The Commonwealth Bank of Australia has announced it will cut variable home loan interest rates by 25 basis points, following the Reserve Bank of Australia's (RBA) highly anticipated cash rate reduction.
The RBA trimmed the official cash rate from 4.35% to 4.10% on Tuesday, citing sustained progress in lowering inflation.
CommBank responded swiftly, confirming that the full rate cut will be passed on to its variable rate home loan customers from 28 February.
What this means for borrowers
For the millions of Australians managing mortgage repayments, this marks a long-awaited turning point after a period of rate hikes spanning 2022 and 2023.
However, it's important to note that repayments mightn't automatically decrease.
Homeowners can adjust their payments via the CommBank app, NetBank, or by contacting the bank directly, the bank said in its release.
"We know that cash rate increases have been challenging for our home loan customers and they are looking forward to some relief," CBA's group executive of retail banking services Angus Sullivan said.
Sullivan also encouraged customers facing financial stress to reach out for support.
"We strongly encourage anyone experiencing hardship to contact us so we can help find a solution that suits their circumstances," he said.
Image by Robert Myers on Wikimedia Commons
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