The Commonwealth Bank has reduced interest rates on its fixed-rate loans for homeowners and investors. The cuts apply to a range of fixed-rate loans, with the biggest cut of 0.3 percentage points to its five-year owner-occupied loan to a new rate of 4.09%.
The changes by CBA are further proof that lenders are desperate to lock in new customers, says Sally Tindall, the research director at comparison site RateCity.
This follows earlier moves by ANZ to drop its interest rates on fixed-rate loans. Tindall says about 40 lenders have now dropped rates on more than 400 fixed-rate home loans since the beginning of this year.
Bendigo and Adelaide Bank is cutting interest rates on two home loan products. The bank says standard variable interest rates will decrease on its basic home loan products and online Bendigo Express home loan.
Bendigo is reducing the variable interest rate on its express loan by 10 basis points to 3.79%, while the basic home loan sees a cut of 20 basis points to 3.79%. The reductions relate to owner-occupied home loans where the borrower is paying principal and interest.