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!)
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.
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%
RBA rate cut is effective from tomorrow. So new rate in comm bank will be effective either tomorrow or future date
@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.
@Len -Bundle Loans: @LBL - what about ANZ are you seeing anything for them now?
you posted a deal a few weeks back with cashbacks etc with them - any more upfront cash coming?
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…..
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.
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
What's the c.r.
What about investment loans? Any changes to variable or fixed rates?
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!
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.
Saw this and totally agree. Seems the press figured it all out fairly quickly though!
opens the website and it shows 2.99%？
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."
Just announced:
Commonwealth Bank increases support
for business and households
19 March 2020 (SYDNEY): Commonwealth Bank has expanded its support for small businesses and households with
a range of new measures in response to today’s RBA announcements.
Commonwealth Bank (CBA) Chief Executive Officer, Matt Comyn said: “We recognise that this is a very concerning
time for our customers and the community. We are focused on delivering the best possible service to all of our
customers and supporting the Australian economy.
“Our branch network is open, our call centres are open, and we are helping our customers use our market-leading
digital technology to do their banking through Netbank and through the CommBank app.
“These are unprecedented times, and they call for unprecedented measures.
“Following today’s reduction in the official cash rate by 25bps we are taking deliberate steps to further support parts of
the economy most in need. In particular, we want to ensure that we help keep small businesses open so that they can
keep Australians employed, and that we do everything we can to support households and older Australians.”
Today CBA is announcing:
100 bps interest rate reduction for all existing cash-linked small business loans
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.
60 bps increase in 12-month term deposits to 1.70% p.a.
Changes to home loan repayments which will release up to $3.6 bn in cash for Australian households
“Small businesses will benefit from an interest rate reduction of 100 bps on all business loans linked to the cash rate.
This is in addition to a range of measures announced last week which are available for businesses facing difficulty
including waiving merchant fees, waiving redraw fees, waiving early redraw fees on business term deposit accounts,
and deferring repayments on vehicle and equipment finance loans.
“We are strongly supportive of the RBA’s new term funding facility. We intend to participate in this scheme to the
fullest extent possible to access long term funding at highly attractive rates to help support Australian households and
businesses at this time.
“For our deposit customers, we will increase our 12 month term deposit rate by 60 bps to 1.70% p.a.. This will be
available to all personal customers, but will especially benefit older Australians relying on their savings. It will ensure
2 Commonwealth Bank of Australia | Media Release 048/2020 | ACN 123 123 124
Ground Floor Tower 1, 201 Sussex Street, Sydney NSW 2000
all Australians are now able to earn a return on their savings which is more than 1.45% higher than the official cash
rate.
“For home owners, we are announcing our lowest advertised interest rate ever – 2.29% p.a. fixed for one, two and
three year terms for owner occupier customers on principal and interest repayments. We are making this offer
available to new and existing customers allowing them to lock in historically low rates. Variable home loan rates
remain unchanged.
“We will also help up to 730,000 customers by reducing repayments to the minimum required under their loan
contract, from 1 May. On average, this will release up to $400 per month for customers and create up to $3.6bn in
additional cash support for the economy. Our owner occupier principal and interest customers are on average 37
months ahead on their home loan repayments. Customers will be able to opt out after the change is effective should
they wish to keep their current repayments. We will contact our customers with more information in early April. There
is no need for customers to contact us before then.
“For customers experiencing hardship, we have made it easier to access overdraft facilities, which customers are able
to apply for online.
“We understand the ongoing uncertainty as the nation responds to the challenges posed by the coronavirus. Australia
has a strong financial system and economy, and we stand ready to support our customers, our people, our suppliers
and the economy at this time.
“Commonwealth Bank’s strong financial position means Australians can have confidence in our ability and willingness
to support the country at this time,” Mr Comyn said.
Support for personal customers
Increasing 12 month term deposit rates by 60 bps to 1.70% p.a. This allows all Australians – and especially older
Australians who rely on their savings income – to earn a guaranteed return which is 1.45% above the cash rate.
This offer is available for all eligible new and existing CBA personal customers, available from the 19th March 2020
on balances from $5,000 to $2 million.
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.
Reducing repayments for all variable principal and interest home loan accounts to the minimum required from 1
May to release up to $3.6bn of additional cash flow for Australian households. Customers who wish to retain their
existing repayments will have the ability to opt out from 1 May.
Increasing eligibility criteria for personal overdrafts, available online or through the CommBank App, helping
customers access emergency funds.
Support for small businesses customers
Reducing rates on business loans by 100 bps. This is in addition to the 25 bps reduction announced on 3rd March,
and will come into effect on 3 April
Supporting the RBA’s new term funding facility, which incentivises lending to businesses.
Continuing to offer a range of measures to provide further assistance to customers facing financial hardship,
including
› Waiving merchant terminal fees
› Waiving redraw fees
3 Commonwealth Bank of Australia | Media Release 048/2020 | ACN 123 123 124
Ground Floor Tower 1, 201 Sussex Street, Sydney NSW 2000
› Waiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts)
› Waiving establishment fees and excess interest on Temporary Excess products
› Deferring repayments on vehicle and equipment finance loans, and providing tailored restructuring options that
meet individual customer needs
This just saved me an extra 100 a month!
Can we transfer existing CBA loans to this?
interested also, was looking elsewhere but ill stay for this
That’s what I would like to know. Think I’m happy to go fixed at 2.29,.
The last cut takes me to 3.15 so a good deal
Fixed rates are available to anyone. If you're currently fixed you'll need to break current fixed first before refixing.
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.
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
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.
How so?
Can you do half variable and half fixed or something?
Yes you can, my bank told me i can fix a portion of my loan and leave the rest on variable interest, and it called split loan
Offset at this rate is… Almost meaningless. 100k offset $2290 a year. Probaby buy some equity…
even less when you can get 1.7% (before tax) on term deposit
You can just split your loan
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…
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?
take it or leave it,
They own the deed to your house… I think you over-estimate you're bargaining power
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.
Trying to not automatically pass on the rate cut, you have to opt in. UnAustralian.
Lol glad I refinanced away from CBA last year
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) ?
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….
Will 2.29% be the comparison rate? I doubt it given their current fixed 2 year comparison rate is over 4%.
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.
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:
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.
Still waiting on Athena's response
Athena went poo poo, higher lending costs, no rate cut this time too
@dust - have sent you a PM
I'm pretty sure the variable rate will be 0.75% soon. Go ahead and lock in 2.29%
Hmmm, currently paying ANZ 3.75% Fixed until Nov 2020. Or pay $6500 exit fee.
Paying a similar rate, but thankfully only until July.
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…
Current mortgage is $605,000
back of napkin maths says you'll save $10k switching, or, $3.5k after exit fee.
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.
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.
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?
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.
CBA came out quickly, so I think you're spot on. Most banks usually announce within 1-3 days.
Now we play the waiting game… https://youtu.be/9JVNMmsN3Co
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
and when that firm collapses?
Free house
No. Loan sold to vulture funds.
Just 1 eaxmple for you. If you switch to NAB today with just 1 property, they will give you 4K bonus. Even if the rate is not best you may be better off if the loan size is small. There is more to loans then just inyerest rates 😊.
Got all excited but the minimum loan size for the $4K is $250,000
If your loan is below that, you shouldn't bother much about interest anyway…
Rep. just someone tell me why CBA cannot pass on RBA rate cut today?
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.
Can i get home loan as a non resident?
yes first marry a resident
any dating app recommendations?
grindr
I’ve heard ING have changed their rules recently around this. Worth giving them a call?
I wish it wasnt so expensive to "break" my current 4% fixed loan :(
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
why do you want another fixed rate loan? haven't you learnt your lesson? never gamble against a bank.
Haha!
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.
Which bank offers 100% offset for fixed portion?
The best offset i knew is Bankwest (40% offset)
Easystreet (Community First). Prior to that I was with TMB which also have full offset fixed loans.
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.
What a screwup I locked up for 2 years at 3%. At the time I thought it was a bargain.
At this time people think this offer is a bargain.
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.
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?
No, not unless you’re in financial hardship
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
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
Interested, tell me more… how do you get 2.29%?