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Commonwealth Bank Slashes Fixed Rate Home Loans by up to 60bps, Leads Market

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Commonwealth Bank Slashes Fixed Rate Home Loans by up to 60bps, Leads Market
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Pdealman on 09/08/2011 - 09:26 commbank.com.au (902 clicks)

Just got an email about this

Commonwealth Bank slashes fixed rate home loans by up to 60bps, leads market
9 August 2010: The Commonwealth Bank now leads the market for a suite of fixed rate home loan products following a decision to slice up to 60bps (0.60%) off its fixed rate home loan products.
Fixed rates for 1 to 5 year products will range from 6.59% to 6.99% and will be the lowest rates for the 1 to 5 year products across all banks.
Ross McEwan, Group Executive Retail Banking Services at Commonwealth Bank said: “Many customers want certainty with their home loan repayments and we are pleased to take a lead and offer customers that peace of mind.”
These new rates will be effective Friday 12 August, 2011.
1 Year 2 years 3 years 4 years 5 years
CBA (current) 6.84%
6.94% 6.99% 7.54% 7.59%
CBA (new) 6.59% 6.59% 6.59% 6.99% 6.99%

Change - 0.25%
-0.35% -0.40% -0.55% -0.60%

For more information contact:
Steve Batten
Commonwealth Bank
Ph: (02) 9117 7050

Financial Home Loan

Related Stores

Commonwealth Bank
Commonwealth Bank

closed Comments

  • robxxx on 09/08/2011 - 09:32
    +5

    A fixed rate home loan is very rarely going to be a bargain.

  • [Deactivated] on 09/08/2011 - 09:34
    +5

    "9 August 2010"……. is this old news? or is the CBA living in the past?
    .
    Is this better in the forums?

    • dealman on 09/08/2011 - 09:56

      not sure but on their website it was in the 2011 news release.
      I think the 2010 is a typo.

    • dealman on 10/08/2011 - 16:35

      They have fixed it on their site to say its 2011

  • ca6leguy on 09/08/2011 - 09:37

    Whoopedoo

  • wisc on 09/08/2011 - 09:40
    +1

    watch fixed home loans come down, with the issues in the US likley to spread, pretty sure the next interest rates direction will most likley be down.

    will have to fix part of the loan in the next year or so…

  • soupiejr on 09/08/2011 - 09:41

    I would change banks but I'd be slapped with exorbitant fees that'll make any savings not worthwhile anymore.

    • dealman on 09/08/2011 - 10:15

      You could go to your existing bank and tell them what others are offering and also tell them that the other Bank is offering to pay off the fees, and if your current bank has any sense they would match the rates. Mine did :-)

  • UFO on 09/08/2011 - 09:42
    +3

    with massive question marks on what is going to happen to the economy, i wouldnt be locking in my home loan right now…. there's every chance rates are headed down further.

  • awangsap007 on 09/08/2011 - 09:49

    This further shows that interest rate is heading down in medium term. Fix Rate is always higher than Variable Rate.

  • battler on 09/08/2011 - 09:58

    OK, so they struck first and 'lead the market', but rates are not effective till 12/8.
    Lets see where they are positioned in the market on 12/8.

    • ca6leguy on 09/08/2011 - 10:18
      +1

      They always "lead the market" for their own benefit.

  • vid_ghost on 09/08/2011 - 09:59
    +1

    they slashed because they think people are going to fix rates when everything points to rates being cut by the RBA :)

  • Domingo on 09/08/2011 - 10:11
    +2

    I'm no economist, but with GFC 2.0 impending, rates are going to be slashed. The reserve bank, despite everyone complaining, was very intelligent in getting rates back up to a 'normal' level post GFC, so now there is room to lower them again to help our economy survive.

    Point being, according to macroeconomics (may have missed the point of the subject, but I don't think I did), rates are very likely to fall, so this looks like CBA trying to lock in higher short term fixed rates before they do.

  • VBO on 09/08/2011 - 10:19
    +1

    Should always look at the comparison rate for homeloans

  • Choc83 on 09/08/2011 - 10:19

    Interests rate futures markets are pricing in a 50 basis point cut in interest rates at the RBA's september meeting. They are obviously looking to lock people in when variable rates fall below the fixed rate.

    Wait until the next rate cut, see if your bank matches the cut, if they don't, call them up and give them hell and threaten to leave. You'll get a call back in two days begging you to stay with an offer of a rate cut. They need your money.

  • redpump on 09/08/2011 - 10:22

    Not happy, I fixed my rates last year at 8.39% or something for 5 years. Very not happy =|

      • cmdwedge on 09/08/2011 - 10:43

        No need to be a dick about it, ca6leguy. People have families to support.

      • UFO on 09/08/2011 - 12:20
        +1

        Think about all the good things you could say with the extra brain cells you dont have.

        People are struggling in todays economic uncertainty mate, no need to rub their faces in it.

    • Domingo on 09/08/2011 - 10:46

      It might suck for 2-3 years, but for the final few years that will probably be good when we are battling inflation due to the export situation with China. However, would have been nicer to have a lower rate (in relative terms) at the start than the end though :(

    • Utopian on 09/08/2011 - 11:19

      Such a tiny percentage of people NEED a fixed loan. And usually because they've borrowed too much, cannot afford a single rate hike. The rest wanna be a hero, stick-it to the banks.

      The House Always Wins.

      • [Deactivated] on 09/08/2011 - 12:56
        +4

        So? You dont need a fixed rate loan. How does that mean this isn't a deal for someone who does?. Dont like Banks - who does, but why spoil this for someone who might like to know about this.

  • altomic on 09/08/2011 - 10:47
    +4

    bps = beats per second?

  • Black Hole on 09/08/2011 - 10:52

    I will rate this negative because the CBA is trying to cash in on current economic panic and I don't believe this lower fix rate is a bargain.

    • UFO on 09/08/2011 - 12:22
      +1

      well they arent a charity, they gotta make their billions from someone…. may as well be from those that can least afford it. lock'em in now, make thousands on early termination later.

      • altomic on 09/08/2011 - 18:33

        exactly, though with the exchange rate being what it is then it is less expensive for their managers to light their cigars with US$100 notes.

  • Aussiekev on 09/08/2011 - 10:57

    It will be interesting to see how the other banks react. I will stick with my variable rate anyway due to the fact that with the aggressive paydown option I am running (Plus a variable rate at 7.1% anyway) the only difference a 0.25% changes makes to me is about $600 over the next 2.5 years (Payoff goal date) And with variable rates likely to follow suit shortly it will be a very minimal difference for a lot of messing around to change.

  • vid_ghost on 09/08/2011 - 11:07
    +1

    Down, down… prices are down! :) should be the new slogan everywhere soon.

  • donkuok on 09/08/2011 - 11:12
    +1

    No need to fix your rate. Those good old days have gone. Variable should be the ultimate solution as the economy will not back up like good old days. It will be stablised. The financial crisis period is getting closer and closer in between.
    What CBA does is to lure you guys to lockdown with the higher rates as compared to variable ones. I bet they know it won't be a good economy ahead. Bear in mind, lenders always win.

    • [Deactivated] on 09/08/2011 - 13:56

      Spoken like a GenY'er or someone with a short memory.
      I doubt you can find any one in finance who doesn't think there'll be a rate increase within 5yrs.

      Op it doesn't belong here, maybe the forums,

  • jv on 09/08/2011 - 11:14
    +8

    this is a news announcement, not a bargain…

    • saxlady on 09/08/2011 - 14:38

      For someone who is shopping for a loan, it's worth posting here. All the discussion that follows is perhaps better suited to the forum, but that's not the OP's fault.

      It's nice to have a good rate brought to your attention - what everyone chooses to do is up to them.

  • antonthenet on 09/08/2011 - 11:17
    +1

    Three months ago I would have killed for that rate as fixed for three years. Killed!

    Funny how the world changes, but you can't physically see it changing.

    Now I wouldn't dream of fixing my rate in the current climate. Well not today at least!

  • dreamzz on 09/08/2011 - 11:18

    Commabank just dropped to 6.84% for fixed first week of this month, I been looking into it, for starting a mortgage. Now its dropped again, seems like there is a chance to drop more, even with the variables.. that what happened last time, fixed rates will down first, then variable rate will follow that, once it goes to minimum, variable rate will start to increase and fixed rates will follow that.. thats the bank trick, people will start to fix there loans for 5 years or so soon..
    For me I need to take a decision for my land this week, so now i am really confused. there is a .5% diff from the fixed to variable now..thats about $1500 for a 225K for 1 year time

  • Kaboda on 09/08/2011 - 11:21
    +1

    Stock market is crashing expect the RBA to lower rates.

    • donkuok on 09/08/2011 - 11:27

      Glenn Stevens is scratching his "bald" head now, "Should I keep the rates or lower them"??? A BIG question in his head now.

      • Steptoe on 09/08/2011 - 11:42

        Only last week they were thinking of upping them. Seems they were right to sit on the fence and wait.

  • Choc83 on 09/08/2011 - 11:51

    They raised rates post GFC-1 while all the other OECD nations kept their rates at record lows, gives them a lot more room to cut cut cut. 1.5% over the next 12 months, bringing the cash rate to 3.25% which is 0.25% above the all time low.

    While they're at it, I'd love to see the carbon tax scuppered in the fallout of all of this. Exactly what we need…higher cost of living…not.

    • UFO on 09/08/2011 - 12:25
      +2

      yeah… better to keep doing what we are doing and live with coal.

      its gunna hurt whenever we do it mate (it is afterall- a TAX), may as well do it now. everyone hated the GST, but now its just 'normal'.

      changes need to be made…. now.

  • uccoffee on 09/08/2011 - 12:59

    i think gillard can save the world by defer the carbon tax now, then AORD will up by 6%

  • snajper on 09/08/2011 - 12:59

    We are still getting ripped off in Australia. Good Friend of mine has just purchased a property in Switzerland and taken 10 year fixed loan @2.75%. Banks are not allowed to rip people off over there.

  • GreatWhiteHunter on 09/08/2011 - 13:12

    Gillard can bite me - if she and Rudd hadn't squandered billions on insulation and other BS we'd be in better shape and not need more supertaxes…

  • interiordesigns on 09/08/2011 - 14:57

    home loans = debt

  • chyawala on 09/08/2011 - 15:24

    For new homebuyers there's a strong view to hold off and it's better to rent now with the way things are panning out.
    As this product needs long term consideration, I see no overall bargain yet so neg from me.

    • saxlady on 09/08/2011 - 15:41

      3d Tvs are available, but some would say it's worth holding off while the technology continues to improve. That's their perogative, but for those that want to buy a tv right now - they would be interested in good prices.
      You shouldn't neg a post because of your perception of the economy (which may be absolutely correct)

  • ilostnemo on 09/08/2011 - 18:16
    +1

    If this is cheaper than the other banks then it's a bargain. It might suit a new home borrower who has yet to sign on the dotted line.

    Those who say you never get a good rate on fixed, timing is everything My home loan was fixed December 2009 for 3 years at 5.75%, sure beats paying 7.75% which is todays rate. Fixed gives you certainty.

    Good luck to those who are borrowing but a crystal ball is definitely needed.

    The Asx rebounded nicely today, lots of people don't know whatis going to happen, including me.

  • app on 09/08/2011 - 18:53
    +1

    Would suggest some research on rates across all banks before jumping at this deal. Being first to lower rates isn't really a benefit - given the delayed date for the change. Once the other banks catch up, I think you'll find that CBA (and probably Westpac) will be charging higher rates (and more fees) than others.
    As for fixed vs variable. I like variable, given the potential for further downward movement. I also don't think rates will rise by much in the next few years.
    However, I do find it annoying that people whinge about not being able to afford their mortgage if rates go up by 0.5%. If this is you - then yes, you need a fixed rate.

  • POWERevolution on 09/08/2011 - 19:12

    Keep an eye on OBS guys they could find you a better deal.
    http://www.onebigswitch.com.au/

  • modsec802 on 09/08/2011 - 22:24
    +2

    Debt is not a bargain

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