CommBank announced the sweeping cuts to it home loan rates on Friday afternoon, joining other major banks in taking the axe to fixed rates.

But it's also dropped a range of its variable rate home loans, some by as much as 35 basis points for investment loans.

It marks the first time CommBank has changed its home loan rates since November 2023.

New variable rates

New owner occupiers can now get a Wealth Package standard variable rate of 6.79% p.a. (7.16% p.a. comparison rate*) with a loan-to-value ratio (LVR) of 80-90% making principal and interest (P&I) repayments.

Here are the new Wealth Package owner occupier variable interest rates:

Product Change (%) New rate Comparison rate*
LVR 60% or below -0.15 6.34% p.a. 6.72% p.a.
LVR 60.01-70% -0.20 6.39% p.a. 6.77% p.a.
LVR 70.01-80% -0.20 6.49% p.a. 6.87% p.a.
LVR 80.01-90% -0.15 6.79% p.a. 7.16% p.a.

Owner occupier rates under the bank's Extra Home Loan are 10 basis points higher (comparison rates* range from 6.45% p.a. to 6.90% p.a.).

Generally, variable rates have fallen by 20 basis points for those with larger deposits, while they're up to 35 basis points lower for investors taking out Wealth Package variable rate loans.

But in line with other recent market moves, it is CommBank's fixed rate loans that have seen the biggest cuts on Friday.

Fixed rates down by up to 70 basis points

Australia's biggest bank has cut fixed rates across one- to four-year terms by up to 70 basis points.

It will see the advertised rate for an owner occupier with a Wealth Package loan fixed for one year at 6.39% p.a. (8.27% comparison rate*) for P&I repayments.

That's a 20-basis point drop on the old rate.

The three-year rate has seen the biggest cut at 70 basis points, taking the new rate to 5.89% p.a. (7.80% p.a. comparison rate*).

CommBank joins its rather large banking peers NAB, Westpac, and Macquarie Bank in slashing fixed rate mortgages in the past month.

NAB cut some of its fixed rate loans in July while Macquarie and Westpac moved this month - Westpac on Wednesday.

That leaves ANZ as the last major lender to make a move.

Mortgage market heating up

Friday's move by Australia's biggest bank is being read as another sign the mortgage market is heating up ahead of a long-anticipated cut to the cash rate.

CommBank is the only major bank still sticking to its forecast of a cash rate cut in November, despite the RBA hosing down the possibility.

The other three big banks have all revised their forecasts to 2025.

Commentators see the drop in fixed rates across the market as a sign that home lenders are preparing for the next round of "mortgage wars".

It's speculated the major banks have been slashing term deposit rates in a bid to boost their war chests ahead of renewed competition in the home loan market.

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
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6.09% p.a.
6.11% p.a.
$2,421
Principal & Interest
Variable
$0
$250
60%
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning



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