This article is from the Australian Property Journal archive
AUSTRALIA’S largest lender Commonwealth Bank has lowered its home loan rates for first home buyers, in a bid for win back new customers.
The CBA cut rates on its Extra Home Loan product by up to 0.35% to 3.89% for an owner occupier paying principal and interest, and 3.79% for those customers who also have more than 30% equity in their loan.
The Extra Home Loan investor loans has also been reduced by up to 0.50%, with additional changes to the two and four-year honeymoon rate products as well.
RateCity research director Sally Tindall the bank has finally accepted the need to put competitive rates on the table to get new customers on their books.
“Over the last few months, growth in CBA’s home loan books has been sluggish. This move today is designed to halt this worrying trend and get ‘ideal’ customers on to their books.
“The catch, of course, is that you have to be a new customer to qualify.
“It’s a pretty unique time in home loans at the moment. If you live in the home you own and you’ve paid off more than 20% of it, then you are in the driver’s seat when it comes to rates.
“Banks big and small are all desperate to win your business if you are willing to switch,” she added.
Despite the changes, the National Australia still holds the lowest variable home loan rates of 3.69%, followed by the CBA with 3.79%, AN&Z with 3.81%, whilst Westpac is the most expensive with 3.98%.
Extra home loan ongoing variable rate
| Product | Old advertised | New advertised | Change |
| Owner-occupier P&I
(LVR under 70%) |
4.14% | 3.79% | -0.35% |
| Owner occupier P&I
(LVR over 70%) |
4.14% | 3.89% | -0.25% |
| Owner occupier, interest-only | 4.76% | 4.51% | -0.25% |
| Investor P&I (LVR under 70%) |
4.59% | 4.09% | -0.50% |
| Investor P&I
(LVR over 70%) |
4.59% | 4.24% | -0.35% |
| Investor interest-only
(LVR under 70%) |
5.33% | 4.83% | -0.50% |
| Investor interest-only
(LVR over 70%) |
5.33% | 4.98% | -0.35% |
Australian Property Journal
