CBA returns further fire
(28 February 2010 – Australia) The Commonwealth Bank of Australia has continued to pump out new initiatives in the wake of the NAB’s break up campaign, showing its big four rival it’s not taking the assault lying down.
CBA has followed up the release of its GoalSaver incentive savings account with a new no-fee mortgage product.
The bank, Australia's largest bank by market capitalisation, appears determined to maintain its lead in the mortgage market in light of the increased competition from rival National Australia Bank.
CBA revealed yesterday it would launch a No-Fee Variable Interest Rate home loan with a 7.24 per cent mortgage rate -- the lowest in the market for a top four bank.
As well as the low rate, homeowners are treated with no fees and charges for the life of the loan, and any customer exiting their standard variable rate home loan can take up the new mortgage without incurring switching costs.
The new offer applies to mortgages above A$150,000 and customers who take on the new loan will also receive a transaction account with no monthly account-keeping fees and a credit card that will be fee-free for the life of the mortgage.
CBA's group executive of retail banking, Ross McEwan, said the new mortgage had been under consideration over the past few months and was not prompted solely as the result of the increased competition among the major banks.
'This is available through all channels. Customers can go into a branch, have a CBA mobile banker, use a broker over the phone or online,' Mr McEwan said.
'This is part of our priority to keep it simple.'
NAB offers a similar mortgage, but only through its online offering UBank.
The bank, Australia's largest bank by market capitalisation, appears determined to maintain its lead in the mortgage market in light of the increased competition from rival National Australia Bank.
CBA revealed yesterday it would launch a No-Fee Variable Interest Rate home loan with a 7.24 per cent mortgage rate -- the lowest in the market for a top four bank.
As well as the low rate, homeowners are treated with no fees and charges for the life of the loan, and any customer exiting their standard variable rate home loan can take up the new mortgage without incurring switching costs.
The new offer applies to mortgages above A$150,000 and customers who take on the new loan will also receive a transaction account with no monthly account-keeping fees and a credit card that will be fee-free for the life of the mortgage.
CBA's group executive of retail banking, Ross McEwan, said the new mortgage had been under consideration over the past few months and was not prompted solely as the result of the increased competition among the major banks.
'This is available through all channels. Customers can go into a branch, have a CBA mobile banker, use a broker over the phone or online,' Mr McEwan said.
'This is part of our priority to keep it simple.'
NAB offers a similar mortgage, but only through its online offering UBank.