mortgage reduction

Just one bank passes on the interest rate cut – offering its LOWEST EVER rate of just 1.99% and saving borrowers $260 a month

PHOTO: The huge mortgage reduction will see borrowers with a median capital city mortgage of $500,000 save $260 a month in repayments, as they fall to $1,846

The Commonwealth Bank has made history as Australia’s first ever major bank to offer a mortgage rate of less than two per cent.

None of the big four banks announced a rate cut on Melbourne Cup day after the Reserve Bank of Australia trimmed the cash rate to a new record-low of 0.1 per cent.

On Wednesday morning, however, the Commonwealth Bank – Australia’s biggest home lender – announced it would slash by one percentage point its four-year fixed rate for owner occupiers paying off principal and interest – taking its Wealth Package loan rate down to 1.99 per cent.

‘This is CBA’s lowest ever advertised home loan rate,’ it said.

The Commonwealth Bank has made history as Australia's first ever major bank to offer a mortgage rate of less than two per cent. Pictured is a Sydney city branch

The huge mortgage reduction will see borrowers with a median capital city mortgage of $500,000 save $260 a month in repayments, as they fall to $1,846.

Australia’s cheapest home loans

Reduce Home Loans Rate Cutter Variable: 1.77 per cent

Homestar Finance Star Gold variable: 1.79 per cent

Pacific Mortgage Group variable loans: 1.89 per cent

Commonwealth Bank of Australia Wealth Package four-year fixed rate: 1.99 per cent

CBA two and three-year fixed: 2.14 per cent

CBA one-year fixed: 2.19 per cent

Athena variable loans: 2.19 per cent

Source: Canstar 

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