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2.29% Fixed Home Loan Rate (for 1, 2 or 3 Year) at CBA

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2.29% Fixed Home Loan Rate (for 1, 2 or 3 Year) at CBA

A new lowest ever fixed rate for a big 4 bank.

Disclaimer: I posted this deal on a CBA IP address so it has marked me as associated but I have no connection, input or any other knowledge of this deal apart from what has been made public. (So please don't PM me questions because I don't know the answer!)

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Commonwealth Bank
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closed Comments

  • +2 votes

    Interested, tell me more… how do you get 2.29%?

    • +4 votes

      Check the news

      Edit: why the down vote?

      The Commonwealth bank has been the first to react.

      It has announced a rate cut of 70 basis points, to 2.29%, which is its lowest rate ever.

    • +3 votes

      Yep it's in the news.

      No changes to the variable rate though.

      •  

        Are these rates available now? Thinking I might switch my existing CBA variable loan over… however on the website the lowest I can see fixed is 2.99%

        • +1 vote

          RBA rate cut is effective from tomorrow. So new rate in comm bank will be effective either tomorrow or future date

          • +2 votes

            @jsb: Can confirm takes effect from 30 March. I got the confirmation from my broker channel today at 3:41pm. Although I would wait a couple of days to see what other lenders do given CBA has not passed on any of today's cut to the variable.

            Commonwealth Bank has today announced the following changes to Fixed Rates for Owner Occupied and Investment Home Loans. Variable home loan rates remain unchanged.

            These changes are effective for new and existing customers switching to a Fixed Rate Home/ Investment Home Loan.

            From Monday 30 March, we are decreasing rates on all Fixed Rate Home Loans by 0.20% - 0.70% p.a.

      • +10 votes

        No changes to the variable rate though.

        wait wut? so the interest rates drop and they leave the variable rate untouched but drop the fixed rate? That's not how fixing works is it? so confused…..

        • +5 votes

          If you have already fixed, you have the rate you got when you did so.

          This rate will be for new loans or refinancing.

        •  

          CBA not passing on any of today's cut. The fixed rate can change/be announced at any time and is not directly dependant on the RBA cash rate as at today.

        • -6 votes

          Government has done a deal with the banks where they are not required to pass on a rate cut so they can lend out the billions $$$ in free money government is giving them and make great margins again

      • -2 votes

        What's the c.r.

      •  

        What about investment loans? Any changes to variable or fixed rates?

  • +10 votes

    I would wait a few weeks to see what other rates come out before jumping on something like this. I would say with where the cash rate is now we will be seeing fixed (and maybe even floating) rates with a 1.x% handle soon!

    • +15 votes

      I agree, other lenders will likely beat this offer given this is a very cheeky way for CBA to actually NOT pass on any of the cut to their variable rate. They were likely to announce a fixed rate cut anyway given it was sitting way too high at 2.99%, but timing it to deflect attention away from not passing any cut.

      • +1 vote

        Saw this and totally agree. Seems the press figured it all out fairly quickly though!

  • -2 votes

    opens the website and it shows 2.99%?

  • -1 vote

    Not interested for fixed but dont mind for 1-year one tho.. really considering, lets see what the agents come up with

  •  

    where's it listed?

    edit:
    https://www.commbank.com.au/guidance/newsroom/cba-increases-...

    "70 bps interest rate reduction in one, two and three year fixed home loan rates for owner occupiers paying principal and interest to 2.29% p.a."

  •  

    This just saved me an extra 100 a month!

  • +2 votes

    Can we transfer existing CBA loans to this?

  • +7 votes

    You gotta be careful - pretty sure the majority of fixed loans don’t let you offset any savings against the balance. So good rate on paper, not so good if you’ve got a fair whack of savings on hand.

    • +1 vote

      I am very skeptical of this offer. I have life of loan discount off the variable rate and feel like this rate is to take people off loans that aren't making as much money as CBA would like. Maybe it's just my tinfoil beanie is too tight though :P

    • +1 vote

      Yes and they cap additional repayments at $10,000 per year which may be insufficient.

      Personally going to look at other banks with better variable rates and a redraw/offset facility

    •  

      It might be a particularly sweet deal for those with existing MISA offset accounts.

    • +1 vote

      Offset at this rate is… Almost meaningless. 100k offset $2290 a year. Probaby buy some equity…

    • +1 vote

      You can just split your loan

  • +2 votes

    Offering a 2.29% p.a. fixed rate home loan for one, two and three years – our lowest advertised rate ever – allowing owner occupier customers on principal and interest repayments to lock in certainty of these historically low interest rates, from 1 May.

    So not immediate.. and you never know what will happen by 1st May.. Probably good to wait…

  • -3 votes

    say a recession u still owe the bank 100k, and u have 50k or lesser in cash stash for a rainy day, is it possible to walk into the bank and boss mode clear all debt for 50k take it or leave it, will they take the offer?

    • +35 votes

      take it or leave it,

      They own the deed to your house… I think you over-estimate you're bargaining power

  • +19 votes

    CBA decided not to pass in any of the 0.25% rate cut announced by RBA today for the existing home loan customers.

    Everyone got to decide whether should give business to a bank like this.

  • +4 votes

    If they're fixing at that rate, doesn't that mean that they think the rate will go even lower than that (or am I missing something) ?

    • +9 votes

      its clear as day its a recession man, tanking aud with further rate cuts to negative rates is on the way…. the public aint spending money for economic activity, everything is going to basic utilities, mortgages and food to survive…0 rates wont change ppls spending habbits in a recession, all the govt is doing now is printing more money to inject into a economy that wont accept the reality its a recession…the sooner they accept its a recession, that money is better planned and spent elsewhere thats needed to kickstart the economy….

  • +1 vote

    Will 2.29% be the comparison rate? I doubt it given their current fixed 2 year comparison rate is over 4%.

    • +2 votes

      Here's the fees for their current fixed rate loans. I suspect they will stay the same.

      $750 rate lock fee*
      $600 upfront establishment fee ($0 with Wealth Package)
      $8 monthly loan service fee ($0 with Wealth Package)

      Also I wanted to add that the comparison rate shouldn't be relied upon in all situations. It's usually based on a 25-year loan team - in the case of a 12 month fixed rate, it isn't a good 'comparison'. Typically you would refinance or enter another fixed rate at the end of your fixed-rate term.

      • +1 vote

        Rate lock doesn't automatically apply when you fix a loan with Commonwealth. It's a choice to borrowers who want to protect themself in the event the fixed rate drops, whilst they are going through the process - see explanation below:

        • Rate Lock allows you to lock in the interest rates for a period of 90 days effective from the date we process your request. Rate lock fee only available on 1-5 year periods. Applies to each Rate lock. Rate Lock is only available at application and a fee applies. At the end of the fixed rate period, the interest rate converts to the applicable Standard Variable Rate relevant to your loan purpose and repayment type at that time, less any applicable package discount specified in your Loan Contract.
  • +2 votes

    The RBA reduced the cash rate today from 0.50%, down to 0.25%. CBA was the first to release updated rates, so while this seems like a deal right now, I would strongly urge everyone to give it a few days before taking up this deal.

    Before this rate cut, variable rate loans were available at 2.49%. So assuming those same lenders pass on the full 0.25% rate cut, their loans will be sitting at 2.24% variable.

    Personally, I would hate to be locked into a 2.29% fixed rate home loan when 0% interest rates are on the cards in the near future.

  • -3 votes

    @dust - have sent you a PM

  •  

    Hmmm, currently paying ANZ 3.75% Fixed until Nov 2020. Or pay $6500 exit fee.

    •  

      Paying a similar rate, but thankfully only until July.

    • +3 votes

      If you have a massive mortgage you will come out ahead switching. I wouldn't switch to CBA though.
      https://moneysmart.gov.au/home-loans/mortgage-switching-calc...

    •  

      Datrance, it really depends on how much your home loan is. Currently, there are a few great offers which are perfect for people in your situation. In some cases, you'll 'earn' your $6500 exit fee back in 2-3 months. Feel free to send me a PM to chat about your specific situation.

      • +1 vote

        You use the term absolutely loosely. How can you be so certain there will be savings had without knowing the loan amount? Where are you getting the 2-3 months from? Gives me the same level of confidence as I get from a used car salesman trying to sell me a very reliable used car.

        Edit: @Free Parking, edited your comments?

        •  

          You're correct. I posted it and then corrected my mistake before you posted.

          That being said, most people with at least a $150,000 home loan paying 3.75% will save money if they can refinance.

          Obviously this is general advice only, and you need to conduct your own research.

    • +2 votes

      Talk to a good broker bro.. I know some banks are giving away 4K for refinance… and if you get a good rate too…you should end up in positive…

    •  

      really? I have 3.69% with St george until May 2021 — I can customer service today but told me only need 3500 for break cost — I thought it is too low?

  • +1 vote

    Tempted but break cost from existing fixed loan cost too much.
    Rebate will be icing on top.

  •  

    By announcing their decision this early, it seems CBA is ‘inviting’ other banks to follow their suits by not passing on the rate cut. What’s the typical time frame for other banks to respond I wonder.

  • +2 votes

    Still 1-1.5% too high. The covid19 virus will smash all economies.

    Until people can reduce fear and accept the risks of this virus, we are going to be down in the sinkhole for a very long time.

    Everything we do has an element of risk, doesn't matter what it is, even hiding in a private bunker.

    To date, still more chance from dying from a motor accident than covoid19 within Australia.

    Financially, if you are on the bottom, you are going to lose big time.

  •  

    Why do people go with Big 4 lol - go with the cheapest rate available

  •  

    Rep. just someone tell me why CBA cannot pass on RBA rate cut today?

    • +9 votes

      Banks fund mortgages through wholesale markets, offshore offshore and customer deposits. I would be very surprised if mortgage rates go down - you're not going to see it from the leaner operations because the market fundamentals don't support it. The term "pass on rate cuts" was invented by Howard and his utterly incompetent Treasurer (Costello) to get the public blaming banks instead of incredibly poor macroeconomic policy undertaken by the Government.

  • +1 vote

    Can i get home loan as a non resident?

  • +2 votes

    I wish it wasnt so expensive to "break" my current 4% fixed loan :(

    • +1 vote

      How long have you got to go on fixed? You might be able to pay the break fee depending on how much it is vs how big your loan is if refinancing and still be ahead within the year. But seems you probably already crunched the numbers

    • +6 votes

      why do you want another fixed rate loan? haven't you learnt your lesson? never gamble against a bank.

  • +1 vote

    Never gamble with fixed rate mortgages.

    You will have more luck at the casino.

    •  

      I hedged my bet a couple of years ago with 3 yr fixed/ variable 50/50 3.69/3.49. Both had 100% offset accounts (rare). Borrowed extra with equity.

      Now have the fixed portion all 100% offset, costing nothing. Variable dropped to 3%, remaining mortgage all here.

      If things went other way i would now have the variable offset and worst case scenario 3.69%.

      Cant do that with CBA.

      • +1 vote

        Which bank offers 100% offset for fixed portion?
        The best offset i knew is Bankwest (40% offset)

  • +1 vote

    https://www.savings.com.au/home-loans/rba-emergency-rate-cut...

    Keep an eye on this summary page tomorrow if you want to see what each bank does.

  • +1 vote

    What a screwup I locked up for 2 years at 3%. At the time I thought it was a bargain.

  • +1 vote

    Why wouldnt you consider a fixed loan this time around seeing as they’re now not passing on any interest rate cuts? Still a good 0.5% off most variable rates, and i dont see CBA passing on any further cuts in full.

  • +1 vote

    This should give anyone with a variable loan confidence. Rates will be low for some time.
    How many people can say they are on fixed rate lower than the variable by a fair way? Not many i know, it any at all.

  •  

    Do you reckon there'll be any relief for the loans which are stuck for 2-3 yrs at the higher int rate as a result of the RBA cuts?

  • +5 votes

    0.00% Change for variable rate long term mortgage holders = FK loyal customers = FK CBA will be looking to move mine, putting this under the fake heading of helping out australians while crapping on a bunch of them, passing on NOTHING from the drop today, absolute crap

    • +1 vote

      and if you're down with Bad Boy then FK you too

    •  

      They don’t need to pass on RBA rate cuts… if you are that annoyed, fix your loan at 2.29% or refinance with a bank offering $4k to do so

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