The Commonwealth Bank of Australia (CBA) and AMP Bank have altered the promotional rates on some of their mortgages, while NAB has stopped offering one product altogether.
From yesterday (27 February), CBA commenced special interest rates for its new loan products, the Extra Home Loan and Extra Introductory Rate Owner Occupier Home Loan.
The Extra Life of Loan product decreased 10 basis points to 4.09% p.a. for owner occupiers while the Extra Introductory Rate dropped by five basis points to 3.99% p.a. for the first three years (reverting to 4.42% p.a. afterwards).
For investors, both the Extra Life of Loan and the Extra Introductory Rate products remain unchanged.
CBA also removed its $8 monthly service fee for new and existing Extra Home / Investment Home Loans from 18 February. The bank also abolished the $600 establishment fee for its Extra Introductory Rate and Extra Home / Investment Home Loan products.
“We regularly promote our products and services, and as part of our normal marketing activity we have chosen to promote our simple, low fee, low rate Extra Home Loan product in the market,” a bank spokesperson told Australian Broker.
CBA’s promotional transition
In introducing the Extra Life of Loan and Extra Introductory Rate promotional rates on 27 February, CBA has ended its 3 Year Special Rate Saver Offer. In doing this, the bank will no longer waive the $600 establishment fee or the $8 monthly loan service fee for new owner occupied or investment loans under the 3 Year Special Rate.
This means the rate increases by 30 basis points to 4.29% p.a. for owner occupiers and by 47 basis points to 4.73% p.a. for investors.
Existing customers with a 3 Year Special Rate Saver Home / Investment Home Loan will still not be charged the $8 service fee if it was waived for them previously.
“From time to time we offer special discounts on select products. This week we informed our mortgage broking partners that our existing 3 year Special Rate Saver Offer has been replaced with new rates on our Extra Home Loan product, which offers a better rate when the introductory two year special discount expires than the existing Special Rate Saver product,” the CBA spokesperson said.
AMP promotion comes to an end
AMP Bank has also announced a change its promotional rates for its Professional Pack owner occupied home loan. These lower rates had been available for one month for customers who selected a mix of fixed and variable rates on their home loan.
“AMP Bank offered a special fixed interest rate on its Professional Pack owner occupied loan for a limited time, ending on Friday 24 February. There is no change to the standard Professional Pack owner occupied three-year fixed interest rate at 4.59% p.a.,” an AMP spokesperson told Australian Broker.
There has been no change to the AMP’s standard interest rates.
NAB halts new applications of loan product
Finally, National Australia Bank (NAB) also announced it will no longer be offering its new NAB Homeplus loans, effective from 11 March.
“No existing customers with NAB Homeplus loans will be disadvantaged by this change, and customers now have a greater choice of NAB home loans,” a NAB spokesperson told Australian Broker.
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