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Major follows rate-cutting trend

by Nick Bendel9 minute read

One of the big four banks has become the latest lender to reduce rates after cutting five basis points from two of its products.

The Commonwealth Bank has made cuts to the interest rates for its Advance and Special Rate Saver products.

Interest for advance one-year fixed rate investment home loans for Mortgage Advantage package customers now starts at 4.54 per cent.

That is 40 basis points less than the bank’s current one-year fixed rate.


The offer applies to new and existing clients who contribute at least $100,000 of new money.

Meanwhile, the three-year Special Rate Saver rate has fallen to 4.84 per cent after the Commonwealth Bank increased the discount margin.

The margin has been increased from 0.55 per cent off the reference basic variable rate to 0.60 per cent.

This is a limited offer and only applies to new home and investment loans approved during the campaign period.

The product will continue to have a $0 establishment fee and $0 loan service fee until June 27.

The rate cuts follow the bank’s recent decision to extend a $1,000 rebate to first home buyers.

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