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 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
READ MORE VIA THE DAILY MAIL