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- CBA hikes fixed rates by up to 0.90%
CBA hikes fixed rates by up to 0.90%
Australia’s largest bank, CBA, has today increased fixed rates by up to 0.50 percentage points for owner-occupiers paying principal and interest, but all the way up to 0.90 percentage points for some investors.
This is the fourth time CBA has hiked fixed rates this year.
Today’s CBA fixed rate changes for owner-occupiers
| Rate type | Old rate | New rate | Change |
| 1-yr fixed | 2.99% | 2.99% | 0.00% |
| 2-yr fixed | 3.29% | 3.79% | +0.50% |
| 3-yr fixed | 3.79% | 4.19% | +0.40% |
| 4-yr fixed | 3.99% | 4.39% | +0.40% |
| 5-yr fixed | 4.29% | 4.49% | +0.20% |
Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest on a package rate.
| CBA lowest fixed rates – compared to 1 year ago | |||
| Rate type | 1 year ago | Today | Change (% points) |
| 1-yr fixed | 2.09% | 2.99% | 0.90% |
| 2-yr fixed | 1.94% | 3.79% | 1.85% |
| 3-yr fixed | 2.14% | 4.19% | 2.05% |
| 4-yr fixed | 2.19% | 4.39% | 2.20% |
| 5-yr fixed | 2.99% | 4.49% | 1.50% |
Source: RateCity.com.au. Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% loan-to-value ratio (LVR).
RateCity.com.au database analysis:
- 2 fixed rates under 2% for owner-occupiers, fixed for 1-year.
- 88 fixed rates under 2.5% for owner-occupiers.
- Average big four bank 3-year fixed rate for owner-occupiers has risen 2.02% since 1 year ago.
- 68 variable rate loans under 2%.
RateCity.com.au research director, Sally Tindall, said the biggest hikes were reserved for investors paying interest only with rises of up to 0.90 percentage points.
“These hikes are not minor tweaks by Australia’s biggest bank. They are sizable hikes, particularly in relation to investor rates,” she said.
“While investors often opt to fix so they know what their repayments will be, these hikes may force some to reassess their strategy.
“The gap between the big four banks’ average 3-year fixed rate and their lowest variable has now blown out to 1.86 percentage points. However, this will start to narrow when the cash rate hikes start rolling in.
“People who fixed at the start of the pandemic for a couple of years could get the shock of their lives when they realise how far fixed rates have risen already.
“If your fixed term is coming to an end, use this time to shop around and plan your next steps,” she said.
Source: RateCity.com.au. Note: rates are the banks’ lowest fixed and ongoing variable rates. LVR requirements apply.
Lowest big four bank owner-occupier home loan rates
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 2.99% | 3.24% | 2.99% | 2.99% |
| 2-yr fixed | 3.79% | 3.49% | 3.49% | 3.39% |
| 3-yr fixed | 4.19% | 4.04% | 3.99% | 3.89% |
| 4-yr fixed | 4.39% | 4.29% | 4.19% | 4.29% |
| 5-yr fixed | 4.49% | 4.59% | 4.49% | 4.49% |
| Variable | 2.19% | 2.09% | 2.19% | 2.19% |
Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.
Disclaimer
This article is over two years old, last updated on April 12, 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 18 Nov, 2024
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