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One major bank has passed on the full rate cut by slashing its variable, three- and five-year fixed-rate home loans.
Commonwealth Bank today announced it will reduce its standard variable rate (SVR) by 0.25 per cent per annum.
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Its three-year and five-year fixed-rate products will also be reduced by 0.25 per cent and 0.30 per cent respectively.
The new SVR will take effect on 20 February 2015.
The new SVR of 5.65 per cent is the lowest since April 2009. CBA's fixed rates are now the lowest the bank has ever offered.
“As the nation’s largest lender, we are always seeking to deliver value to our 1.6 million home loan customers and today we are pleased to pass on the full benefit of the RBA’s recent interest rate reduction,” said Matt Comyn, group executive for retail banking services.
“Our new reduced standard variable rate of 5.65 per cent is the lowest we have offered in five years, but beyond price, we are committed to ensuring our customers have the right tools, support and advice that will give them the best home buying experience.”
By reducing the SVR by 0.25 per cent, home owners will save $48 a month, based on the average mortgage of $300,000.
CommBank has reduced its variable rate for home loans by 2.16 percentage points since 1 November 2011, representing a saving of $430 in monthly repayments and an annual saving of $5,160 on a home loan of $300,000.
