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CBA hikes fixed rates for the second time in 18 days
Australia’s largest bank, CBA, has increased fixed rates for the second time in less than three weeks, with hikes up to 0.25 per cent.
CBA last hiked fixed rates on 3rd February, by up to 0.20 per cent for owner-occupiers and investors.
As a result, its 2-year owner-occupier fixed rate is now in line with pre-COVID levels (February 2020). Its longer-term fixed rates are already significantly higher than pre-pandemic levels. Only CBA’s 1-year-fixed and variable rates are lower than they were two years ago.
Today’s CBA hikes for owner-occupiers paying principal & interest - contact us for CBA investor changes
| Rate type | Old lowest rate | New lowest rate | Change |
| 1-year fixed | 2.59% | 2.79% | +0.20% |
| 2-year fixed | 2.84% | 2.99% | +0.15% |
| 3-year fixed | 3.24% | 3.49% | +0.25% |
| 4-year fixed | 3.54% | 3.69% | +0.15% |
| 5-year-fixed | 3.79% | 3.99% | +0.20% |
Note: Above rates are for owner-occupiers paying principal and interest on a package rate.
CBA rates for owner-occupiers – today vs pre-COVID, February 2020
| Rate type | Pre-COVID (Feb 2020) | Today | Change | Difference in repayments ($500K) |
| 1-year fixed | 2.99% | 2.79% | -0.20% | -$54 |
| 2-year fixed | 2.99% | 2.99% | 0.00% | $0 |
| 3-year fixed | 2.99% | 3.49% | 0.50% | $137 |
| 4-year fixed | 3.19% | 3.69% | 0.50% | $139 |
| 5-year-fixed | 3.19% | 3.99% | 0.80% | $225 |
| Lowest variable | 3.22% | 2.29% | -0.93% | -$246 |
Notes: rates are for owner-occupiers paying principal and interest. Monthly repayments are based on a $500K, 30-year loan.
RateCity.com.au research director, Sally Tindall, said today’s hikes from CBA show the bank is feeling the strain of sustained increases in funding costs.
“It’s hard to believe just five months ago CBA was offering a fixed rate loan below 2 per cent,” she said.
“Since then, CBA has hiked six times, raising most of its owner-occupier fixed rates above pre-pandemic levels.
“The big banks in particular have given up competing with the low-cost lenders on fixed rates. If customers want to fix with a big four bank today, chances are they’re going to have to pay more.
“There are still some relatively-low rates from low-cost lenders, however, in this environment they’re unlikely to stick around for much longer. The RateCity.com.au database shows there is just one 2-year fixed rate starting with a ‘1’, and just 14, 1-year rates under this benchmark,” she said.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1 yr fixed | 2.79% | 2.49% | 2.64% | 2.49% |
| 2 yr fixed | 2.99% | 2.74% | 2.89% | 2.89% |
| 3 yr fixed | 3.49% | 3.14% | 3.34% | 3.39% |
| 4 yr fixed | 3.69% | 3.54% | 3.54% | 3.79% |
| 5 yr fixed | 3.99% | 3.79% | 3.69% | 3.99% |
| Variable | 2.29% | 2.19% | 2.29% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Lowest owner-occupier home loan rates on RateCity.com.au
| Category | Lender | Rate | |||
| 1 yr fixed | Unity Bank | 1.84% | |||
| 2 yr fixed | Geelong Bank | 1.99% | |||
| 3 yr fixed | Geelong Bank/Bank First | 2.39% | |||
| 4 yr fixed | Bank First | 2.64% | |||
| 5 yr fixed | Bank First | 2.64% | |||
| Variable | Reduce Home Loans | 1.77% |
Source: RateCity.com.au. Note: rates are for owner-occupiers paying principal and interest, some LVR and location restrictions apply.
Disclaimer
This article is over two years old, last updated on February 21, 2022. 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 24 Dec, 2024
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