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Commonwealth Bank is announcing its lowest ever Fixed Rate home loan as well as significant cuts to a number of business loans in response to the Reserve Bank of Australia’s (RBA) package of further measures to support job creation and the recovery of the Australian economy from the pandemic.

Today CBA is announcing:

  • 100 bps reduction to 1.99% p.a. on new four year Fixed Rate home loans for Owner Occupiers paying Principal and Interest in the Wealth Package. This is CBA’s lowest ever advertised home loan rate;
  • 15 bps reduction to 2.14% p.a. on new two and three year Fixed Rate home loans for Owner Occupiers paying Principal and Interest in the Wealth Package;
  • 10 bps reduction to 2.19% p.a. on new one year Fixed Rate home loans for Owner Occupiers paying Principal and Interest in the Wealth Package.
  • 2.99% p.a. secured and 3.99% p.a. unsecured business loans rates through the Government’s SME loan guarantee scheme, a reduction of up to 51 bps;
  • 2.49% p.a. rates on new three, four and five year fully secured BetterBusiness loans, a reduction of approximately 50 bps.

Angus Sullivan, Group Executive, Retail Banking Services said: “Yesterday’s move by the RBA will lower the structure of interest rates and provide confidence that Australians can borrow over the long term at historically low rates. We have reflected this in our interest rate settings, offering customers our lowest ever fixed rate – 1.99% fixed for four years – providing customers who fix some or all of their home loan with certainty and confidence into the future. We have also reduced the one, two and three year fixed rates for new owner-occupier loans by 10-15 bps.”  Variable home loan rates remain unchanged.

“We also recognise that many Australian households with deferred home loan repayments feel uncertain about the ongoing financial impact of the pandemic. For Owner Occupier customers who made their home loan repayments on time for at least 12 months prior to their deferral, but are unable to recommence their full repayments, we will ensure they can remain in their home until at least September 2021. This will give these customers the confidence that they can remain in their home while they focus on improving their financial health. This will hopefully bring peace of mind to our loyal customers.”

Mike Vacy Lyle, Group Executive, Business Banking said: “As we have said the whole way through this pandemic, we have a vital role to play in helping Australian businesses through the range of challenges they are facing. Following the RBA’s announcement, we are dropping interest rates on our second phase SME Guarantee Scheme loans by up to 51 basis points. Interest rates for our secured loans through the Scheme have now reduced to 2.99% and on unsecured loans they have dropped to 3.99%.”

To provide further support to small businesses, CBA will also be offering a fixed rate fully-secured BetterBusiness loan over 3-5 years of 2.49%.

“We know our customers want certainty, and the cuts we have announced today will help provide some certainty in the form of highly competitive interest rates for terms of three to five years. Coupled with the wide range of support measures we have rolled out over the last eight months, we’re confident these offers will help many small businesses get through this challenge and back on the road to recovery and growth,” Mr Vacy Lyle said.

Customers who have questions regarding today’s rate change are encouraged to speak to one of our home lending or business banking specialists in branch or over the phone.

  • The new Fixed Rates will take effect on Wednesday, 11 November
  • The new business rates will take effect on Wednesday, 11 November


Disclaimer

Rates current at 11 November 2020, and are subject to change. For current interest rates visit:

 

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