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CBA hikes new customer rates on its Wealth package home loan
CBA has today increased the rates on its package home loan, which includes an offset account, by up to 0.20 percentage points – but only for new customers.
Existing customers are not impacted by these hikes. Investor new customer rates remain the same.
CBA Wealth Package rate changes
New customers only - for owner-occupiers paying principal and interest
LVR required | Old rate | New rate | Change (% points) |
60% or less | 5.32% | 5.34% | +0.02 |
70% or less | 5.35% | 5.42% | +0.07 |
80% or less | 5.42% | 5.52% | +0.10 |
90% or less | 5.99% | 6.19% | +0.20 |
90.01% - 95% | 6.99% | 6.99% | No change |
Source: RateCity. Note: rates are for new customers who are owner-occupiers paying principal and interest. $395 annual fee applies.
This move is the latest in a round of small but significant rate hikes from three of Australia’s biggest banks: CBA, NAB and ANZ, in addition to their standard RBA hikes.
Big bank additional rate hikes in March for new customers
- 1 March: CBA increases the rate on its basic home loan (Extra Home Loan) for borrowers with less than 70 per cent by 0.10 percentage points.
- 1 March & 10 March: NAB increases the rates on its basic home loan (Base Variable) by up to 0.20 percentage points. (Loans with over 80% LVR increased on 1 March, loans under 80% increased 10 March).
- 25 March: CBA increases the rate on its basic home loan (Extra Home Loan) for the majority of loan tiers by up to 0.70 percentage points. Two new loan tiers are created for new customers with big and small deposits.
- 28 March: ANZ increases the rate on its basic home loan (Simplicity Plus) for most loan tiers by up to 0.21 percentage points. Two new loan tiers are created for new customers with big and small deposits.
RateCity.com.au research director, Sally Tindall, said: “The ferocious competition for new business is starting to wear thin with the banks.”
“A soaring cash rate, steep increases to wholesale funding costs and global uncertainty are forcing banks to reassess their new customer discounts,” she said.
“As a result, CBA has now decided to scale back its new customer discounts on both its basic and package home loans, particularly for risky borrowers with small deposits.
“Unsurprisingly one of the biggest hikes from CBA today was for new borrowers with deposits of between 10 and 20 per cent who are seen as one of the high-risk groups in the eyes of the bank.
“CBA did, however, keep the rate for new customers with less than a 10 per cent deposit unchanged, albeit at a highly uncompetitive 6.99 per cent.
“While the rate rises are a double whammy for new customers taking out one of these loans, existing customers are still just copping the standard hikes prescribed by the RBA.
“Westpac is the only big bank that hasn’t increased new customer rates in addition to the standard RBA rate rises and the clear leader among the big four when it comes to new customers with small deposits.
“It will be interesting to see if Australia’s second largest lender can maintain these discounts in this fractious environment,” she said.
Big four bank rates available for new customers with varying deposit sizes
Big four bank lowest rates - BASIC HOME LOAN (no offset account)
Loan-to-value ratio | |||||
60% or less | 70% or less | 80% or less | 90% or less | Over 90% | |
CBA | 5.52% | 5.57% | 5.69% | 6.39% | 7.09% |
Westpac | 5.14% for 2 yrs then +0.4% | 5.14% for 2 yrs then +0.4% | 5.24% for 2 yrs then +0.4% | 5.54% for 2 yrs then +0.4% | 5.54% for 2 yrs then +0.4% |
NAB | 5.59% | 5.59% | 5.59% | 6.69% | 6.69% |
ANZ | 5.44% | 5.49% | 5.59% | 6.29% | 6.69% |
Source: RateCity. Note: Rates are for owner-occupiers paying principal and interest on a basic variable loan with no offset account. LVR brackets may vary slightly between banks. Westpac and NAB have fewer LVR categories and therefore have the same rates listed for multiple tiers below.
Big four bank lowest rates - OFFSET HOME LOAN
Loan-to-value ratio | |||||
60% or less | 70% or less | 80% or less | 90% or less | Over 90% | |
CBA | 5.34% | 5.42% | 5.52% | 6.19% | 6.99% |
Westpac | 6.69% | 6.69% | 6.79% | 7.09% | 7.09% |
NAB | 6.82% | 6.82% | 7.02% | 7.02% | 7.02% |
ANZ | 6.49% | 6.49% | 6.49% | 6.69% | 6.69% |
Source: RateCity. Advertised rates are for owner-occupiers paying principal and interest on a fully featured variable loan with an offset account. LVR brackets may vary slightly between banks. Annual or monthly fees apply for offset accounts.
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Product database updated 19 Nov, 2024
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