Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

CBA announces fixed rate cuts

money savings super money savings super
Malavika Santhebennur 5 minute read

The major bank has slashed its two-year fixed rates to new lows but increased its four-year fixed rates by 20 bps.

The Commonwealth Bank of Australia (CBA) has shaved 20 bps off its two-year fixed rate home loans for owner-occupiers paying principal and interest in its wealth package.

The big four bank has reduced its two-year fixed rate from 2.14 per cent per annum to 1.94 per cent per annum (3.93 per cent per annum comparison rate), which the major bank said is CBA’s lowest ever advertised home loan rate.

However, at the same time, CBA has increased its four-year fixed rate for owner-occupiers paying principal and interest by 20 bps, from 1.99 per cent per annum to 2.19 per cent per annum (comparison rate 3.73 per cent per annum).


In addition, CBA has announced a 30 bps reduction on a new three-year fixed rate home loan for investors paying principal and interest in the wealth package to 2.39 per cent per annum (4.31 per cent per annum comparison rate), which the major bank said represents its lowest ever advertised investor rate.

Commenting on the interest rate changes, CBA executive general manager, home buying, Michael Baumann said: “We know that customers are looking to lock in the certainty of fixed rates with around 40 per cent of new customers fixing their loans to take advantage of the current record-low rate environment.

“These changes allow home owners and investors to take advantage of our lowest ever fixed rates, adding to our already market-leading home lending solutions, including the recently announced CommBank Green Loan.”

The new fixed rates were effective from 22 March.

Furthermore, CBA announced that it has launched a new digital splitting tool for customers seeking to split their variable home loan to take advantage of both a fixed and variable home loan.


The lender said that eligible customers can now split their home loan in NetBank and the CommBank app by selecting the portion of their loan and the term they would like to fix, and see in real-time how this split would change their repayments.

Speaking of the launch, Mr Baumann said: “There is a limited understanding from customers that they can split their loan, and this new tool gives customers even more control of their finances and the flexibility of redraw and offset.

“We have made it easier than ever for eligible customers to take advantage of the new fixed rates announced today with the launch of this easy-to-use feature in the CommBank app and NetBank.”

The major bank’s interest rate changes have followed those by Westpac, which reduced mortgage rates across the banking group on its fixed rate owner-occupier and investment loans, and NAB, which in February cut its fixed rates by up to 55 bps.

[Related: CBA liable for overcharged interest]

CBA announces fixed rate cuts
money savings super
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

money savings super
Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.


more from the adviser
amanda stoker 850 ta

Breaking News

Assistant Minister for Women shares tips for women in finance

Senator Amanda Stoker, the Assistant Minister for Women, has shar...

money au ta

Breaking News

Business lender receives $87.5m ABSF investment

GetCapital is set to receive $87.5 million worth of mezzanine fun...

house construction new ta

Breaking News

Hot Property: The biggest property headlines from the week 13-17 September

The weekly round-up of the biggest news stories from across Momen...