CBA hikes fixed rates



Australia’s largest bank has increased its rates for the fourth time this year.

The Commonwealth Bank of Australia (CBA) has lifted rates by up to 0.5 percentage points for owner-occupiers paying principal and interest, but all the way up to 0.9 percentage points for some investors.

compiled CBA rate changes for owner-occupiers:









Rate type

Old rate

New rate

Change

1-yr fixed

2.99%

2.99%

0%

2-yr fixed

3.29%

3.79%

+0.5%

3-yr fixed

3.79%

4.19%

+0.4%

4-yr fixed

3.99%

4.39%

+0.4%

5-yr fixed

4.29%

4.49%

+0.2%

Note: Above rates are for owner-occupiers paying principal and interest on a package rate

also compiled CBA lowest fixed rates compared to a year ago:









Rate type

1 year ago

Today

Change


(% points)

1-yr fixed

2.09%

2.99%

0.9%

2-yr fixed

1.94%

3.79%

1.85%

3-yr fixed

2.14%

4.19%

2.05%

4-yr fixed

2.19%

4.39%

2.2%

5-yr fixed

2.99%

4.49%

1.5%

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with a 70% LVR

Sally Tindall, RateCity.com.au research director, said investors paying interest only saw the biggest hikes with rises of up to 0.9 percentage points.

“These hikes are not minor tweaks by Australia’s biggest bank,” Tindall said. “They are sizable hikes, particularly in relation to investor rates. While investors often opt to fix so they know what their repayments will be, these hikes may force some to reassess their strategy. The gap between the big four banks’ average three-year fixed rate and their lowest variable has now blown out to 1.86 percentage points. However, this will start to narrow when the cash rate hikes start rolling in. People who fixed at the start of the pandemic for a couple of years could get the shock of their lives when they realise how far fixed rates have risen already. If your fixed term is coming to an end, use this time to shop around and plan your next steps.”

Here’s the lowest big-four bank owner-occupier home loan rates according to RateCity.com.au:










Rate type

CBA

Westpac

NAB

ANZ

1-yr fixed

2.99%

3.24%

2.99%

2.99%

2-yr fixed

3.79%

3.49%

3.49%

3.39%

3-yr fixed

4.19%

4.04%

3.99%

3.89%

4-yr fixed

4.39%

4.29%

4.19%

4.29%

5-yr fixed

4.49%

4.59%

4.49%

4.49%

Variable

2.19%

2.09%

2.19%

2.19%

Note: Some loan-to-value ratio requirements apply.

source