In a bid to attract new borrowers, Commonwealth Bank has decreased its owner-occupier and investor fixed rates by as much as 0.70 percentage points for terms ranging from one to four years.
Variable rates for new customers have also seen reductions, dropping by up to 0.35 percentage points. The bank now offers a competitive 5.89% rate for three-year terms, aligning with Westpac's latest offering.
Insights from Canstar Data indicate that the landscape of fixed rates is in a state of flux. Sally Tindall, Director of Data Insights at Canstar, shared her perspective, as cited by 9 NEWS, suggesting that "fixed rates are poised to decline even further in the near future."
"The trajectory of these rates will likely depend on central banks' decisions globally and any relief in wholesale funding pressures," Tindall stated, adding a layer of anticipation to an already dynamic market scenario.
A spokesperson for Commonwealth Bank explained to NewsWire that this decision followed a comprehensive review of market conditions and interest rates. "We offer a variety of tools and features to support homeowners in managing their loans," the spokesperson noted.
"Features like our budget planner tool can assist customers in balancing their income and expenses effectively to achieve their financial goals," they added.
This move mirrors Westpac's recent announcement to adjust its fixed rates for owner-occupied and investment properties. Westpac's new one-year fixed rate for owner-occupiers has been reduced from 6.69% to 6.19%, while the five-year rate is now set at 5.99%, reflecting a 0.8 percentage point reduction.
For investors, the decreases are somewhat less pronounced, yet notable, with a one-year fixed rate falling by 0.45 percentage points to 6.34%, and a five-year fixed rate dropping by 0.70 percentage points to 6.19%.
Similarly, NAB recently trimmed its three-year fixed home loan rate by 0.6 percentage points, now offering a rate of 5.99% as of last month. This adjustment made NAB the first among Australia's "big four" banks, excluding Commonwealth Bank's Unloan products, to present a sub-6% fixed-rate option.
RateCity's research director, Sally Tindall, reflected on NAB's strategic maneuver. She described it as a "test to gauge the borrowing community's inclination towards fixed rates," given the volatile nature of the financial markets.
