Major bank cuts rates to all-time low

by Julia Corderoy06 May 2015
The Commonwealth Bank has reduced its standard variable rate to the lowest in the bank’s history following the decision of the Reserve Bank to cut the official cash rate to 2%.

The major bank has slashed its variable mortgage rate by 20 basis points to 5.45%, effective Wednesday 13 May. 

“As the nations leading home loan provider, today’s reduced mortgage rate is the best we have ever offered, and continues our commitment of providing value to our 1.6 million home loan customer,” CBA group executive retail banking services, Matt Comyn said.

Further, the major bank has reduced the interest rate on residentially secured small business loans by 25 basis points.

Adam Bennett, CBA group executive for business and private banking says this reduction recognises the importance of the small business sector as a key driver of the economy.

“This lower rate should help underpin confidence in small business owners to continue to invest in equipment, hire additional staff and grow their enterprise.”

COMMENTS

  • by Craig 6/05/2015 9:58:40 AM

    When I see smaller players like Credit Unions & Building Societies with SVR's lower than 5.45% prior to making this latest cut I wonder why people bother going to the CBA in such droves. Some will be under 5.2% but CBA still rakes it in.

  • by Jessica 6/05/2015 10:00:09 AM

    Most majors passed on the full 0.25%. Why not Commonwealth Bank?

  • by Goodo 6/05/2015 10:02:53 AM

    Theft by stealth!