Standard Variable Rate (SVR) mortgages reduced by 0.13%; owner occupiers to receive record low rate of 5.22%. Business customers to benefit from 0.13% reduction to variable cash rate products, One year term deposit rate increased to 3.00%, a rise of 0.55%, Two and three year term deposit rates to lift by 0.50% to 3.10% and 3.20% respectively. All offers available to new and existing customers.
The CBA standard variable rate (SVR) mortgages will reduce by 0.13%, taking the rate for owner occupiers to a record low 5.22%. The SVR for investor loans will fall to 5.49%. While this decrease delivers benefits to mortgage holders, Commonwealth Bank will also support savers by increasing the return on several products, some by as much as 0.55%.
“While the circumstances of each RBA rate decision will always vary, we’ve carefully considered the current environment and the needs of both borrowers and savers,” said Matt Comyn, Group Executive Retail Banking Services.
“Today we’ve reduced our mortgage rates to a record low while increasing term deposit rates to provide an opportunity to the millions of Australians who rely on savings.”
To meet the needs of savers, Commonwealth Bank will increase one, two and three year term deposits with all rates set to rise to 3.0% or greater.
“Given increased funding costs and capital requirements, today’s announced changes seek to balance the needs of both customers and shareholders,” Mr Comyn said.
Business customers with variable rate products will also benefit from a 0.13% rate reduction.
Over the past two years, the official cash rate has decreased three times, and during this period Commonwealth Bank home loan customers who are owner occupiers have had cumulative savings of about $939 a year on the average loan of $350,000.
CBA fixed mortgage rates are unchanged and all new rate offers announced today will be effective from Friday, 19 August.
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