Commonwealth cuts home loan rates

Commonwealth Bank announced a 0.21 per cent in its standard variable mortgage rate yesterday taking it down to 8.32 per cent. The move follows similar cuts by ANZ on Friday and NAB over the weekend. Westpac and St George are expected to follow suit today and cut the rates on their standard variable mortgage products. Commonwealth also announced cuts of 0.40 per cent on fixed rate mortgages for new customers. CBA's group executive of retail banking services Ross McEwan said “We have seen some reduction in our cost of funding over the past week and as Australia's biggest lender, the Commonwealth Bank is committed to remaining extremely competitive in the mortgage market.” The new rates will take effect from October 30, three days after ANZ and NAB's new rates. The falling costs of credit to banks in wholesale debt markets is expected to ease pressure on the Reserve Bank to make big cuts in official interest rates next month.

Source: The Daily Telegraph