Borrow
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.
RELATED ARTICLES
About the author
About the author
Banking
Brokers own the mortgage funnel: Why a 77% share is reshaping bank strategy in Australia
Australia’s mortgage market has quietly consolidated around one gatekeeper: the broker. With brokers facilitating roughly 77% of new home loans, distribution power has migrated from bank branches to ...Read more
Banking
Commonwealth Bank leads consideration while People First Bank tops satisfaction in YouGov’s latest rankings
In a revealing snapshot of Australia's banking landscape, the Commonwealth Bank (CBA) has emerged as the most considered financial institution among prospective customers, according to YouGov's ...Read more
Banking
End of the easing: what a major bank’s call signals for Australian balance sheets
A major Australian bank now argues the Reserve Bank’s rate-cut run has hit a pause, resetting the risk-free rate narrative across corporate Australia. The Reserve Bank of Australia’s latest Statement ...Read more
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
Banking
Open banking in action: An early adopter’s playbook—and the ROI case for Australian brokers
Open banking is shifting from conference buzzword to operational backbone in Australia’s broking sector. Early adopters are using bank-grade data and AI to compress underwriting cycles, cut compliance ...Read more
Banking
Australian brokerage pedals ahead using consented data for a speedy advantage
Open banking is no longer a concept; it is an operating model shift changing how brokers originate and package credit. Australia’s early movers, backed by the Consumer Data Right (CDR) and a ...Read more
Banking
BOQ’s mortgage squeeze is a market signal: where banks will win next as competition bites
Bank of Queensland’s shrinking home-loan book is more than a single-institution story; it’s a barometer of how Australia’s mortgage market is being rewired by broker power, non-bank agility and ...Read more
Banking
Brokers own the mortgage funnel: Why a 77% share is reshaping bank strategy in Australia
Australia’s mortgage market has quietly consolidated around one gatekeeper: the broker. With brokers facilitating roughly 77% of new home loans, distribution power has migrated from bank branches to ...Read more
Banking
Commonwealth Bank leads consideration while People First Bank tops satisfaction in YouGov’s latest rankings
In a revealing snapshot of Australia's banking landscape, the Commonwealth Bank (CBA) has emerged as the most considered financial institution among prospective customers, according to YouGov's ...Read more
Banking
End of the easing: what a major bank’s call signals for Australian balance sheets
A major Australian bank now argues the Reserve Bank’s rate-cut run has hit a pause, resetting the risk-free rate narrative across corporate Australia. The Reserve Bank of Australia’s latest Statement ...Read more
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
Banking
Open banking in action: An early adopter’s playbook—and the ROI case for Australian brokers
Open banking is shifting from conference buzzword to operational backbone in Australia’s broking sector. Early adopters are using bank-grade data and AI to compress underwriting cycles, cut compliance ...Read more
Banking
Australian brokerage pedals ahead using consented data for a speedy advantage
Open banking is no longer a concept; it is an operating model shift changing how brokers originate and package credit. Australia’s early movers, backed by the Consumer Data Right (CDR) and a ...Read more
Banking
BOQ’s mortgage squeeze is a market signal: where banks will win next as competition bites
Bank of Queensland’s shrinking home-loan book is more than a single-institution story; it’s a barometer of how Australia’s mortgage market is being rewired by broker power, non-bank agility and ...Read more
