PHOTO: The BIG four


Despite ACCC chair Rod Sims’ recent criticism of the bank practice of charging higher rates to loyal existing borrowers than they do for new business, lenders are rolling out big fixed rate home loan cuts – that apply to new customers only.

In October, many lenders have reserved their biggest rate cuts for the fixed rate home loan market – where rates only apply to new loans. The 2 and 3-year fixed rate market in particular is active right now with plenty of rate cut announcements.

All of the big four banks have slashed fixed rates in recent weeks.

From today, 10th October, Commonwealth Bank’s advertised 2 and 3 year (OO, P&I) fixed rates in the “Wealth Package” have been cut to 2.99 per cent pa (Comparison rates from 4.46 per cent pa).

Commonwealth Bank have now cut two and three-year fixed rates by 0.80 percentage points since June. The RBA has cut the official rate by 0.75 percentage points. Commonwealth Bank’s variable (OO, P&I) advertised home loan rate has come down by 0.57 percentage points in the same period.