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CBA hikes 2- and 4-year fixed rates
Australia’s biggest bank, CBA, has today hiked its 2- and 4- year fixed rates by 0.05 per cent for owner-occupiers paying principal and interest.
Today’s rate changes from CBA - owner occupiers
| Old rate | New rate | Change | |
| 2-yr fixed | 1.94% | 1.99% | +0.05% |
| 4-yr fixed | 2.24% | 2.29% | +0.05% |
Note: the above rates are CBA’s lowest rates for owner occupiers paying principal and interest and are package rate loans with an annual fee of $395.
This is the third time CBA has hiked its 4-year fixed rate this year, and the first time the bank has hiked its 2-year rate for owner-occupiers.
Analysis of the RateCity.com.au database shows over the last two months, there have been more hikes than cuts in every fixed rate category with the exception of 1-year rates.
Lenders that have moved at least one fixed rate in the last 2 months
| Lenders that have cut | Lenders that have hiked | |
| 1 yr fixed | 23 | 21 |
| 2 yr fixed | 24 | 28 |
| 3 yr fixed | 20 | 32 |
| 4 yr fixed | 6 | 23 |
| 5 yr fixed | 10 | 24 |
Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates.
RateCity.com.au research director, Sally Tindall, said CBA’s incremental hikes were starting to add up.
“While a 0.05 per cent hike isn’t much in the scheme of things, anyone who was planning to lock in one of these rates, but hadn’t, could be kicking themselves today,” she said.
“CBA is factoring in a rise in the cost of funding over the next couple of years, particularly now the RBA’s term funding facility has closed.”
A recent economic insights report from CBA shows around half of its new owner-occupier loans settled in June were fixed, with the two-year rate the most popular.
“Despite today’s hikes, CBA still has one rate under 2 per cent – the bank is not going to let go of that easily,” she said.
“CBA’s two-year rate was extremely competitive and attracting significant interest. By keeping it just under 2 per cent, the bank is trying to keep momentum going at a more sustainable price.
“Sixty-five lenders are offering at least one rate under 2 per cent. It’s a great marketing tool to get new customers in, particularly refinancers looking to lock in a fixed rate that starts with a ‘1’,” she said.
Lowest big four bank owner-occupier home loan rates
| CBA | Westpac | NAB | ANZ | |
| 1 yr fixed | 2.09% | 1.99% | 2.09% | 2.04% |
| 2 yr fixed | 1.99% | 1.89% | 1.99% | 1.94% |
| 3 yr fixed | 2.19% | 1.98% | 2.08% | 2.04% |
| 4 yr fixed | 2.29% | 2.19% | 2.24% | 2.49% |
| 5 yr fixed | 2.99% | 2.49% | 2.49% | 2.69% |
| Variable | 2.69% | 2.19% for 2 yrs then 2.69% | 2.69% | 2.72% |
Source: RateCity.com.au. Note: Westpac's rates are for a loan to value ratio of up to 70%.
Disclaimer
This article is over two years old, last updated on August 10, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 17 Nov, 2024
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