Australia's largest bank has cut variable home loan rates across its Wealth Package products by up to 203 basis points for new customers.
The largest decrease in advertised rate of 203 basis points (2.03%) applies to customers with sizeable deposits of 60% of the loan-to-value ratio (LVR) - a 40% deposit or equity.
CommBank will now offer these customers a rate of 4.57% p.a. (4.97% p.a. comparison rate*), becoming the bank's lowest variable rate product available for new customers with an offset account.
Prior to the move, CommBank offered a variable Wealth Package advertised rate for customers with 60% LVR north of 6% p.a.
For reference, CommBank's Wealth Package product provides interest rate discounts and no establishment fees or service fees for eligible home loans for an annual package fee of $395.
The move by CommBank has positioned itself 180 basis points lower than its big-four rivals when comparing the lowest variable rate loan with an offset account available.
Lowest variable rate home loan with offset - big-four banks
|Institution||Variable interest and comparison rate||Rate conditions|
|Commonwealth Bank||4.57% p.a. (4.97% p.a. comparison rate*)||60% LVR, $395 annual fee|
|ANZ||5.74% p.a. (5.75% p.a. comparison rate*)||80% LVR, $10 monthly offset fee|
|Westpac||5.94% p.a. (6.29% p.a. comparison rate*)||70% LVR, $395 annual fee|
|NAB||6.37% p.a. (6.73% p.a. comparison rate*)||Loan of $750,000+, $395 annual fee|