Rate Watch: CBA slashes fixed rates

The Commonwealth Bank of Australia has announced changes to its home-loan offerings for owner-occupiers and property investors, lowering their fixed mortgage rates by as much as 90 basis points (bps).

The bank's owner-occupier borrowers will enjoy lowered rates for principal-and-interest (P&I) and interest-only loans. P&I home-loans under the Wealth Package offer with a one-year fixed term now have an interest rate of 3.29%. Similar loans on a four-year fixed term have a rate of 3.49%.

Also read: Low mortgage rates could save Australia from recession

The biggest cut was for IO loans with five-year fixed term — the rate for this loan offer was reduced by 90bps to 4.14%.

CBA also reduced its rates for investor loans. A similar 90-basis point cut was introduced for the investor IO loan with a four-year fixed term, which now has a mortgage rate of 4.14%.

The tables below show the changes to CBA's fixed-rate offerings:

Commonwealth Bank’s Owner-Occupier Home Loans

P&I Home Loans

Fixed-rate Term	New Rate
One year	3.44%
Four years	3.64%

P&I Home Loans under Wealth Package

Fixed-rate Term	New Rate
One year	3.29%
Four years	3.49

IO Home Loans

Fixed-rate Term	New Rate
One year	4.04%
Three years	3.94%
Four years	4.14%
Five years	4.14%

IO Home Loans under Wealth Package

Fixed-rate Term	New Rate
One year	3.89%
Three years	3.79%
Four years	3.99%
Five years	3.99%

Commonwealth Bank’s Investor Home Loans

P&I Home Loans

Fixed-rate Term	New Rate
One year	3.79%
Two years	3.59%
Three years	3.79%
Four years	3.79%
Five years	3.79%

P&I Home Loans under Wealth Package

Fixed-rate Term	New Rate
One year	3.64%
Two years	3.44%
Three years	3.64%
Four years	3.64%
Five years	3.64%

IO Home Loans

Fixed-rate Term	New Rate
One year	4.04%
Two years	3.94%
Three years	3.94%
Four years	4.14%
Five years	4.14%

IO Home Loans under Wealth Package

Fixed-rate Term	New Rate
One year	3.89%
Two years	3.79%
Three years	3.79%
Four years	3.99%
Five years	3.99%