Off the back of Macquarie's decision to cut variable rates by 25 basis points earlier this week, CommBank has responded with a 15 basis point decrease of its own. 

The decision comes with the RBA set to meet next week to determine the cash rate for July, with CommBank economists amongst the many others forecasting another 50 basis point increase. 

Taking into consideration the 50 basis point increase to variable rates earlier in the month, CommBank has moved variable rates north by 0.35% p.a in June. 

CommBank Chief Economist Stephen Halmarick said the hike might be shallower than market expectations.

"While our view of a shallow rate hike cycle is based predominantly on the impact on household balance sheets and spending from the coming large increase in mortgage funding costs, a tightening of fiscal policy will also support our monetary policy views," Mr Halmarick said. 

Key changes to CommBank's variable rate portfolio for owner occupiers and investors include:

  • Extra P&I <70%: 15 basis point decrease to 2.79% p.a. (2.80% p.a. comparison rate*)
  • Extra P&I 70-80%: 15 basis point decrease to 2.89% p.a. (2.90% p.a. comparison rate*)
  • Investment Extra P&I <70%: 15 basis point decrease to 3.09% p.a. (3.10% p.a. comparison rate*)
  • Investment Extra P&I 70-80%: 15 basis point decrease to 3.19% p.a. (3.20% p.a. comparison rate*)

At the opposite end of the ladder, CommBank has increased fixed home loan rates for new customers by 140 basis points.

This increase means Australia's largest bank is now offering a number of home loans for owner occupiers and investors beginning with a 6 or 7 - a significant change from 18 months ago when many of these fixed products enjoyed rates under 2.00% p.a.

Speaking to Savings.com.au recently, Samuel Philipos director of mortgage brokers Benevolence Financial Group (BFG) said a number of Australians are still favouring fixed rate loans for certainty.

"The logic behind this is that even though fixed rates are much higher, it’s about around certainty," Mr Philipos said.

"It’s the friction between lower short term costs and long term certainty and deciding between which of those two is more valued."

Key changes to CommBank's fixed rate portfolio for owner occupiers and investors all with 95% loan-to-value ratio include:

  • Residential Fixed P&I 3 Years: 140 basis point increase to 6.54% p.a. (5.79% p.a. comparison rate*)
  • Residential Fixed P&I 5 Years: 140 basis point increase to 6.84% p.a. (6.12% p.a. comparison rate*)
  • Residential Fixed IO 3 Years: 140 basis point increase to 6.99% p.a. (6.84% p.a. comparison rate*)
  • Residential Fixed IO 5 Years: 140 basis point increase to 7.29% p.a. (7.14% p.a. comparison rate*)
  • Investment Fixed P&I 3 Years: 140 basis point increase to 6.74% p.a. (6.59% p.a. comparison rate*)
  • Investment Fixed P&I 5 Years: 140 basis point increase to 7.04% p.a. (6.89% p.a. comparison rate*)
  • Investment Fixed IO 3 Years: 140 basis point increase to 6.84% p.a. (6.69% p.a. comparison rate*)
  • Investment Fixed IO 5 Years: 140 basis point increase to 7.14% p.a. (6.99% p.a. comparison rate*)

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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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
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

Image by Harrison Astbury 



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