Commonwealth Bank and Westpac change home loan interest rate deals

TWO of the nation’s biggest banks, including the Commonwealth Bank, have moved interest rates on dozens of mortgage deals that will affect new customers.

TWO of the nation’s biggest banks have altered many home loan interest rate offers including some increases and decreases.

The nation’s largest home loan lender Commonwealth Bank was the first of the big four banks to today reveal to mortgage brokers it was reducing many offers across a multitude of fixed loans, reducing some rates by up to 50 basis points.

The drops were on both investor and owner occupier fixed rate deals. However on eight owner occupier loans across 1, 2 and 5 year terms rates climbed.

The Commonwealth has announced a raft of changed to fixed rate home loan deals.

The biggest fall was on two-year investor interest-only loans which will drop by 50 basis points to 4.34 per cent.

On a $300,000 30-year home loan this will save investors about $82 per month, reducing their monthly repayments to $1447.

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While the largest climb was to a five-year fixed owner occupier principal and interest deal, climbing by 20 basis points.

On the a $300,000 30-year home loan this will cost borrowers an extra $36 per month.

The CBA changes start from today.

Just hours later rival lender Westpac also revealed it was many changes — but most were increases.

Many of the best home loans deal available remain under the four per cent mark but in recent months many investors have been forced to pay rates with a “4” in front.

Westpac is moving many interest rates on fixed rate home loans upwards.

Westpac’s biggest climb was by 25 basis points on some owner occupier interest-only and investor interest-only deals.

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However Financial comparison website Mozo’s spokeswoman said announcement by CBA including many savings for customers proved they are getting hungrier for market share.

“Fixed rate movements are a reflection of the bank’s rates outlook,’’ she said.’

“Today’s decision by the Commonwealth Bank to slash fixed rates for 1 and 2 years while upping longer term rates, indicates that they expect official rates to stay flat over the next year,” she said.

Home loan customers should always review their mortgage rates to get a good deal.

A CBA spokeswoman said in an issued statement, “We regularly review our pricing to deliver the best value for our customers, while maintaining our prudent lending standards.”

A Westpac spokesman said there changes will commence from Wednesday, march 7.

“The new fixed rates continue to provide a competitive offering for customers across Australia,’’ he said.

The Reserve Bank of Australia board has kept the cash rate on hold at 1.5 per cent since August 2016 and they meet again on Tuesday.

It’s expected the cash rate won’t move.

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