The Commonwealth Bank other day responded to the Reserve Bank’s cash rate reduction by offering its lowest mortgage rate, while increasing rates for some key savings accounts. As Australia’s cash rate falls to record lows, Commonwealth Bank will reduce its standard variable rate for home loans by 20 basis points and also provide good news for savers by lifting interest rates for its two popular savings accounts by between 5 and 55 basis points.
For home loan customers, our standard variable rate mortgage has reduced to 5.45%, the lowest we’ve ever offered. For savings customers, we’ve lifted our 8 month term deposit rate by 55 basis points to 3.05%. Customers using our popular GoalSaver account will be offered a rate of 3.05%. Our small business customers, who rely on their homes as backing for their business loans, will see their loan interest rate reduced by 25 basis points.
Announcing the changes, Matt Comyn, Group Executive Retail Banking Services said: "While the circumstances of each RBA cash rate decision will always vary, we’ve carefully considered the impact of the current environment and moved to balance the needs of our customers.”
“Today we’ve reduced our mortgage rates to a record low and also considered the needs of the almost 7 million Australians who have savings accounts with us.”
“One in three Australians consider CBA as their main financial institution.”
“Lifting the rates for our deposit customers at a time when the cash rate is decreasing recognises the importance of savings income, particularly for retirees and young people.
“As the nation’s leading home loan provider, today’s reduced mortgage rate is the best we have ever offered, and continues our commitment of providing value to our 1.6 million home loan customers,” Mr Comyn said.
Adam Bennett, Commonwealth Bank Group Executive for Business and Private Banking said today’s 25 basis point reduction for residentially secured business loans recognises the importance of the small business sector as a key driver of the Australian economy.
“This lower rate should help underpin confidence in small business owners to continue to invest in equipment, hire additional staff and grow their enterprise,” he said.
All our new rate offers will be effective from Wednesday May 13.