The Commonwealth Bank now leads the major banks in fixed rate home loans following a decision to slice up to 60bps off its fixed rate products.
Fixed rates for one to five year products will range from 6.59 per cent to 6.99 per cent.
Ross McEwan, group executive of retail banking services at the Commonwealth Bank, said many customers want certainty with their home loan repayments and the bank was pleased to take a lead and offer customers that peace of mind.
Speaking with The Adviser, a CBA spokesperson said: “In light of recent events, wholesale fixed rates have reduced and we [have been] quick to pass these benefits onto our customers.”
The move follows a host of other lenders, including Westpac, St George and Citibank, which have cut pricing on their fixed rate products – prompting speculation over the Reserve Bank’s next rate announcement.
Asked whether the collective fixed rate pricing cuts would impact the RBA’s decision, the CBA spokesperson said he could not speculate ahead of the bank’s results announcement tomorrow.
“Ahead of that we can’t make any comments about how this will affect the RBA’s decision on monetary policy,” he said.
“We are hamstrung.”