Commonwealth Bank, the country’s largest mortgage lender, has slashed its fixed-rate borrowing costs, in a move that will add further momentum to a post-Easter residential market picking up faster than many analysts expected.

CBA cut its 3-year fixed rate packaged loan for both owner occupiers and investors on Friday by 0.4 per cent to 5.59 per cent and 5.69 per cent respectively. This followed similar moves by 15 smaller lenders and non-banks in cutting their fixed mortgage rates in the past two weeks.