CBA leads with a 0.70% reduction on its fixed and variable rates
Five lenders reduced their home loan rates last week, continuing a trend of cuts across the mortgage market, the latest RateCity interest rates weekly wrap-up has shown.
Commonwealth Bank of Australia (CBA) led the charge on Friday, lowering rates on its fixed and variable mortgages by up to 0.70 percentage points. The bank’s three-year fixed rate dropped from 6.59% to 5.89%.
Earlier in the week, Westpac also reduced its two- to five-year fixed rates to 5.89%, matching CBA’s new offering.
According to RateCity.com.au, more than 60 lenders are now offering at least one fixed or variable rate below 6%.
Police Credit Union introduced a three-year fixed rate of 5.49%, the lowest in the market. Geelong Bank followed with a special one-year fixed rate of 5.50%. 
Abal Bank still offers the lowest advertised variable mortgage rate at 5.75%. This is closely followed by Police Bank, Bank of Heritage Isle, and Border Bank, each with a rate of 5.84%. Other lenders, including Pacific Mortgage Group, The Mutual Bank, and Police Credit Union, are offering variable rates at 5.89%.
In the fixed rate category, the lowest advertised rates span across different term lengths. For the one-year fix, Geelong Bank leads with its 5.50% rate, while Australian Mutual Bank offers a 2-year fixed rate at 5.64%. The three-year fixed rate is lowest at 5.49%, provided by Police Credit Union. Macquarie Bank features a four-year fixed rate at 5.79%, while RACQ offers a five-year fixed rate at 5.59%. 
Among Australia’s big four banks, CBA offers the most competitive variable rate at 6.15%, closely followed by National Australia Bank (NAB) at 6.14%. Westpac and ANZ trail behind with variable rates of 6.44% and 6.79%, respectively.
In terms of fixed rates, CBA and Westpac lead with a three-year fixed rate of 5.89%. NAB’s lowest 3-year fixed rate is 5.99%, while ANZ’s is higher at 6.59%. The lowest one-year fixed rate is offered by Westpac at 5.89%, with CBA slightly higher at 6.39%. NAB and ANZ both advertise one-year fixed rates of 6.69%. 
“The rate cuts are only likely to keep coming, as expectations of a looming cash rate cut grow,” said Laine Gordon (pictured above), spokesperson at RateCity.com.au. “This week, the monthly CPI indicator clocked in at 3.5% for the year to July, which was a drop from 3.8 per cent in June – the second monthly drop in a row.
“The RBA isn’t going to cut the cash rate on the back of this data, but it should give the board some confidence that inflation is moving in the right direction, which will be good news for borrowers.”
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