(9 May 2012 – Australia) Commonwealth Bank of Australia (CBA) cut interest rates on both its one and its three year fixed-rate home loans, following on from the Reserve Bank of Australia (RBA)’s reduction last week.The bank lowered its rate on a three-year fixed rate loan by 34 basis points to 5.99 percent, while the one-year fixed home loan rate will drop by 15 basis points, also to 5.99 percent.
The rates are effective from 8 May, on loans worth more than A$150,000.
“We believe that for customers looking for certainty when it comes to their home loan repayments, our one- and three-year fixed rate home loans will be attractive options for them,” said CBA executive general manager retail products Michael Cant.
CBA sliced 40 basis points from its standard variable rate last week, taking it to 7.01 percent, as banks battle for market share amid the weakest mortgage growth in more than three decades.