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Major bank to undercut competitors

by Jessica Darnbrough8 minute read
The Adviser

Yesterday, one of Australia’s majors vowed to beat the advertised rate for its competitors' fixed rate home loans.

The Commonwealth Bank of Australia has promised brokers it will undercut one-, two-, three-, four- and five-year fixed rate home loans offered by ANZ, National Australia Bank, Westpac, St George, Bank of Melbourne, and Bank SA for the next seven weeks.

In addition to the guarantee, CBA also revealed it would cut the interest on its three-year fixed rate home loans to 4.89 per cent.

Commonwealth Bank acting executive general manager for retail products and customers, Clive van Horen, said customers were increasingly looking to lock in a competitive rate, with some fixed rate terms at historic lows.


"Some of our fixed home loan rates are at 20-year lows, so now is a great time for customers looking for a guaranteed rate across either the short to medium term,” he said.

The offer is available to new and existing customers who take out a new fixed rate home/investment home loan or switch into a fixed rate home/investment home loan.

Of course, CBA isn’t the only lender to trim its rates, with AMP also announcing plans to shave up to 30 basis points from some of its fixed rate products.

Yesterday, the lender announced it would cut 20 basis points from its one-, two- and three-year fixed rate products, taking them to 4.69, 4.69 and 4.79 per cent respectively.

In addition, the lender cut 30 basis points from its five-year fixed rate, taking it to 5.69 per cent.

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