Following the Reserve Bank of Australia’s (RBA) cash rate decision, on 02 August 2022, CBA will increase home loan variable interest rates by 0.50% per annum (p.a.) and increase the interest rates on select savings products.
Standard Variable rate changes
- Owner Occupier Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a.
- Investor Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a.
- Owner Occupier Interest Only Standard Variable Rate home loans will increase by 0.50% p.a.
- Investor Interest Only Standard Variable Rate home loans will increase by 0.50% p.a.
Group Executive, Retail Banking, Angus Sullivan said: “We have been helping customers understand the changing rate environment and consider what it means for them, and we will continue to be there for them.
“We have a range of tools to help our customers manage their money, including Spend Tracker in the CommBank app. Customers can also manage their mortgage repayments online and align them to when and how often they are paid.
“For those customers looking for greater certainty around their future mortgage repayments, from Friday 5 August and for a limited time, we are offering a special 4-year Owner Occupier Principal and Interest fixed home loan package rate of 4.99% p.a1. This special is a reduction of 1.60% p.a. from our current 4-year fixed package rate and has been rolled out especially to support customers looking for certainty in a changing rate environment. Customers can contact us via the CommBank app or connect with a home lending specialist to explore the different support options available, including how using rate lock2 can help to secure the 4-year fixed rate special offer,” he said.
The comparison rate for the new 4-year fixed package rate is 5.46% p.a3. The new home loan variable interest rates will take effect on 12 August 2022. Customers will be able to see their new interest rate in the CommBank app or online via NetBank the day after the change has gone live.
CBA will also increase the interest rates for the following deposit products.
New deposit rates
- The NetBank Saver standard variable interest rate will increase by 0.50% p.a. to 0.85% p.a. The 5-month introductory variable rate will increase by 0.50% p.a. to 1.80% p.a.
- An 18-month Term Deposit special offer of 3.00% p.a4.
“We want to support our customers where we can, and that includes increasing select deposit rates so they can achieve a better return on their savings and manage any pressures to their family budget associated with cost of living,” Mr Sullivan said.
We will also continue to review our savings rates and other offers to see how we can best support our customers during this time. The new Term Deposit will be available from 8 August, while the new NetBank Saver rate will take effect on 12 August 2022. Customers will be able to see their new interest rate on the CommBank website.
Where customers can access help
Customers can estimate how much their home loan repayments may increase via the home loan repayments calculator.
We have a range of support materials available for customers, including tips for customers to manage their home loan in a rising rate environment.
Customers who are falling behind or think they may fall behind with home loan repayments can message us to be connected with our Financial Assistance Solutions Team.
We also encourage customers to speak with us about how we can support them via our extensive network of lending specialists.
Things you should know:
1 We reserve the right to terminate this limited offer at any time. To apply for a Wealth Package, you must have an eligible home loan or line of credit with an initial package lending balance of at least $150,000 at the time of your application. A non-refundable annual fee of $395 is payable in advance. The package can be established in the name of one or two individual’s name/s, or in the name of a corporate entity. It cannot be established in the name of a business or family investment trust. Customers with Low Documentation loans are not eligible to apply for Wealth Package.
2The CommBank rate lock fee is $750. The rate lock fee is charged per fixed rate loan account in the application. Your rate will be locked in for 90 days after we charge the rate lock fee so if you settle within 90 days, your loan will fund at the locked in rate.
3 Comparison rate calculated on a $150,000 secured loan over a 25-year term. WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
4The Term Deposit special offer is available to personal, SMSF and business customers. Financial institutions are excluded. It is available on balances from $5,000 to $1,999,999, with interest paid annually. CBA’s Term Deposits, rates and eligibility criteria are available here.
This information is prepared without considering an individual readers objectives, financial situation or needs. Readers should consider the appropriateness to their circumstances. Visit Important Information to access Product Disclosure Statements or Terms and Conditions which are currently available electronically for products of the Commonwealth Bank Group, along with the relevant Financial Services Guide. Target Market Determinations are available here. Loan applications are subject to credit approval. Interest rates are correct at the time they are published and are subject to change. Fees and charges may apply.