Commonwealth Bank of Australia (CBA) has slashed its home loan rates for the second time in just one month as Australia's lending environment continues to heat up.
The major will drop its fixed rate home loan to 5.69%, down from 5.84%, effective Friday, 30 May.
“We continually review our interest rates and will reduce our fixed rate home loans for new lending by up to 0.40% p.a.," a CBA spokesperson confirmed to Australian Broker. "This reflects our ongoing commitment to providing competitive and flexible home loan options for our customers."
The bank, one of Australia's Big Four banks, unscored its commitment to delivering value to customers through a combination of competitive loan offerings, expert guidance and digital tools. A CBA spokesperson added that the changes were shaped by current market pressures and the ongoing cost-of-living crisis, which continues to put financial strain on many Australians.
CBA's recent move also highlights the nation's intensifying lender wars, as banks and non-banks jostle for a position in an increasingly heated home loan market.
Earlier this month, in a move widely expected by the market, the Reserve Bank of Australia (RBA) chopped 25 basis points off the official cash rate (OCR), dropping the benchmark rate to 3.85%, the lowest levels in two years. Since then, with the loan market becoming increasingly competitive, lenders have been vying for borrowers’ attention with enticing rates and a range of incentives.
In fact, several dozen lenders have responded to the RBA's movement by cutting their own variable rates. According to CAnstar, more than 65 lenders have revealed changes to their home loan rates following the recent rate cuts.
The list includes Westpac, National Australia Bank (NAB), ANZ, Suncorp Bank, ING,AMP, Athena Home Loans, Bluestone Home Loans, Pepper Money, MoneyMe, RACQ Bank, Bank of Sydney and Brighten, among others.
