CommBank has today followed a raft of lenders in cutting fixed and variable rates for owner-occupiers and investors.
The bank cut fixed rates across its 1-, 2-, 3-, and 4-year terms by up to 0.70 percentage points and dropped new customer variable rates by up to 0.35 percentage points, according to Canstar.
The cuts follow both Westpac and NAB slashing their fixed rates in recent weeks.
The last big bank to cut variable rates was NAB in April.
Commbank now matches Westpac on its most competitive rate – 5.89 per cent for a 3-year term.
According to Canstar, that rate is still 0.40 percentage points higher than the lowest rate available for the same term.
Canstar Data Insights Director Sally Tindall expects fixed rates to continue to fall.
”While it’s unclear just how far fixed rates will fall at this stage, it’s highly likely they’ve still got a way to go,” Tindall said.
“We expect to see more fixed rate cuts in the weeks and months ahead, as central banks across the globe cut official rates and wholesale funding pressures hopefully continue to ease.”
ANZ is the only one of the big four banks not to have cut at least one fixed rate in recent weeks, although she said they’re likely to follow the pack soon.
Tindall said the move would put heat on the rest of the market to ensure their new customer home loan rates were competitive.
She said most borrowers were choosing to stay on a variable rate, holding out hope of rate cuts next year.
“A couple of RBA cuts could see many banks’ lowest rates swing back to variable, potentially leaving those borrowers on a fixed rate high and dry on an uncompetitive rate,” she said.
