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How low can loans go? Big bank drops rates
Another of the big four banks has announced a new lowering of its loan rates, with a reduction of up to 90 basis points for both owner-occupiers and investors on new and existing loans.
How low can loans go? Big bank drops rates
Another of the big four banks has announced a new lowering of its loan rates, with a reduction of up to 90 basis points for both owner-occupiers and investors on new and existing loans.
The Commonwealth Bank of Australia (CBA) has updated its New Wealth Package fixed rate for owner-occupied and investment home loans, with both new and existing customers getting a discount starting Tuesday, 24 September.
Interest-only loans
The largest rate drop is for owner-occupiers with interest-only home loans on a five-year fixed rate, who will see rates drop by 90 basis points to 3.99 per cent, as will investors with an interest-only home loans on a four-year fixed rate.
Owner-occupiers with interest-only mortgages on one-year and four-year fixed rates will see rates drop by 65 basis points (to 3.89 per cent and 3.99 per cent, respectively), while those with a three-year fixed rate will see their new rate start from 3.79 per cent, a 10 basis point reduction.
Principal and interest loans
Other sizeable rate drops include investors with a four-year fixed rate on principal and interest loan repayments, who will see their interest rates fall by 75 basis points to 3.64 per cent.
Owner-occupiers with a P&I home loan that is on a one-year fixed rate term will see a range change of 60 basis points, dropping the new rate to 3.29 per cent. Those with a four-year fixed rate will also see their rates drop by the same amount, bringing the new rate to 3.49 per cent.
Other ADIs follow
Alongside CBA, ME has also announced reductions of up to 49 basis points across its variable home loan products for investors.
The bank cut rates for investors on both principal and interest and interest-only loans with a loan-to-value ratio of less than, or equal to, 80 per cent.
The changes have been applied to the “flexible home loan member package” for investors as well as the “basic home loan” investor product, with all changes effective as of Tuesday, 24 September 2019.
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