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- CBA hikes variable rates again but cuts select 3-year fixed rates
CBA hikes variable rates again but cuts select 3-year fixed rates
CBA has today increased the rates on its package variable home loan, which includes an offset account, by up to 0.12 percentage points but only for new customers.
This is the second time Australia’s biggest bank has increased the new customer rates on this loan in the last two weeks. In total, since 31 March, the bank has increased these rates by up to 0.22 percentage points.
Big bank rival Westpac hiked select new customer variable rates yesterday, while NAB and ANZ increased select new customer variable rates last month.
Existing customers are not impacted.
Today’s changes: CBA Wealth Package - for new customer owner-occupiers paying principal & interest.
| LVR required | Old rate | New rate | Change (% points) |
| 60% or less | 5.34% | 5.44% | +0.10 |
| 70% or less | 5.42% | 5.54% | +0.12 |
| 80% or less | 5.52% | 5.64% | +0.12 |
| 90% or less | 6.19% | 6.19% | No change |
| 90.01% - 95% | 6.99% | 6.99% | No change |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. A $395 annual fee applies.
Big bank new customer variable rate hikes: last two months
Note: these hikes are in addition to the 0.25% increase on the back of the RBA’s March decision
| Date | Bank | Loan | Change |
| 1-Mar | CBA | Basic variable | up to 0.10% pts |
| 1 Mar + 10 Mar | NAB | Basic variable | up to 0.20% pts |
| 25-Mar | CBA | Basic variable | up to 0.70% pts |
| 28-Mar | ANZ | Basic variable | up to 0.21% pts |
| 31-Mar | CBA | Package loan | up to 0.20% pts |
| 13-Apr | Westpac | Basic variable | 0.10% pts |
| 14-Apr | CBA | Package loan | up to 0.12% pts |
CBA fixed rate cuts
Australia’s biggest bank has also cut its 3-year fixed rate loan today by 0.40 percentage points for owner-occupiers and investors paying principal and interest.
| Old rate | New rate | Change | |
| Owner-occupiers P&I, 3-yr fixed | 5.99% | 5.59% | -0.40% |
| Investors P&I, 3-yr fixed | 6.09% | 5.69% | -0.40% |
Source: RateCity.com.au. Note: rates are for customers paying principal and interest (P&I). No change to interest-only fixed rates or other fixed rate loan terms.
RateCity.com.au research director, Sally Tindall, said: “At the start of the RBA hikes, the big four banks cut new customer rates repeatedly in a bid to bring in new business. This aggressive discounting is now in reverse.”
“After 10 cash rate hikes and steep increases to wholesale funding globally, the big banks are now quietly slipping their biggest discounts off the table,” she said.
“While the refinancing boom has driven banks big and small to offer competitive new customer rates, the unprecedented volume of loans now refinancing is no doubt putting added pressure on profit margins.
“It’s likely to be getting too expensive for the banks to hand out discounts of this magnitude at these volumes.
“Customers in the middle of negotiating a variable package loan with CBA shouldn’t just accept the rate rise. Ask for the old rate. The bank is unlikely to want to lose you to a competitor and might be willing to make an exception for your business.
“CBA has also today cut its 3-year fixed rate for owner-occupiers paying principal and interest.
“While the majority of the big four bank fixed rate changes have been hikes so far this year, the tide is starting to turn as we approach the cash rate peak, particularly among smaller lenders.
“The RateCity.com.au database shows 16 lenders have taken the knife to fixed rates in the past two weeks, while just 8 have hiked rates.
“That said, fixing is still very much on the nose. The latest ABS lending indicators shows just 5 per cent of new and refinanced loans opted for a fixed rate in February.
“With many economists predicting cash rate cuts in the next couple of years, it’s no surprise many Australians are deciding to keep their options open with a variable rate,” she said.
Big four banks’ variable rates for owner-occupiers
| Bank | Lowest variable | Variable with offset |
| CBA | 5.52% | 5.44% |
| Westpac | 5.24% for 2yrs then +0.40% | 6.69% |
| NAB | 5.59% | 6.82% |
| ANZ | 5.44% | 6.49% |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. LVR requirements apply. Annual fees apply for loans with offset accounts.
Big four banks’ lowest fixed rates for owner-occupiers
| 1-year | 2-year | 3-year | 4-year | 5-year | |
| CBA | 5.99% | 6.09% | 5.59% | 6.59% | 6.69% |
| Westpac | 5.54% | 6.09% | 6.39% | 5.84% | 6.69% |
| NAB | 6.04% | 6.04% | 6.04% | 6.34% | 6.44% |
| ANZ | 5.99% | 5.99% | 6.09% | 6.29% | 6.39% |
Source: RateCity.com.au. Note: rates are for new customers who are owner-occupiers paying principal and interest. LVR requirements apply.
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Product database updated 19 Nov, 2024
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