Commonwealth Bank Drops Interest Rates In Good News For Millions Of Aussies With A Mortgage

Commonwealth Bank trims variable mortgage rate

Australia’s biggest home lender has cut its variable mortgage rates in a sign the Big Four banks are competing harder for new customers – with more official relief expected.

The

Commonwealth Bank

has trimmed its online-only mortgage by six basis points to 5.84 per cent for new customers.

This is now the equal lowest rate among the Big Four banks with

Westpac

and ANZ also having identical variable rates.

But the Commonwealth Bank’s lowest rate requires a bigger 40 per cent mortgage deposit, which is higher than Westpac’s 30 per cent and ANZ’s 20 per cent.

NAB

‘s ubank subsidiary also offers a 5.84 per cent rate while CBA offshoot Unloan has an even lower rate of 5.74 per cent.

The latest reduction in CBA variable rates comes ahead of the Reserve Bank’s May 20 meeting, with the futures market expecting another 25 basis point rate cut that would take it down to 3.85 per cent for the first time since June 2023.