Commonwealth Bank recognises the importance of ensuring borrowers can sustain a strong path to property ownership and will be reducing our owner-occupier standard variable rate for those repaying principal and interest. From 7 July, customers paying off the home they live in will benefit from a lower standard variable rate of 5.22 per cent per annum, a reduction of three basis points.

Around 80 per cent of owner-occupier customers are repaying principal and interest, and these changes can help these borrowers own their home sooner. A customer with an average mortgage of $350,000 will save $78 a year.

We are supportive of the banking regulator's moves to manage the level of growth and resiliency in the housing market. To meet our regulatory requirements, variable interest only home loan rates for owner-occupiers and investors will increase by 30 basis points.

Matt Comyn, Group Executive of Retail Banking Services, said: 'Paying off your home is important for Australians. For owner occupier customers repaying principal and interest, they can take advantage of the interest rate reduction to pay off their home loan faster. These changes also help us keep the right balance in our home loan portfolio, in line with what our regulators require.'

Customers who currently make interest only payments are encouraged, where they are able, to switch to principal and interest repayments. Switching is easy and attracts no fees. Customers can make the change at no cost online, over the phone, or by speaking with a home lending specialist in branch.

These interest only changes are not in response to the bank levy that was announced as part of the Federal Budget in May.

The new rates will be effective from 7 July 2017.

Variable rates

Current

New from 7 July 2017

Standard Owner-Occupied Principal and Interest

5.25% pa

5.22% pa

-3bps

Standard Owner-Occupied Interest Only

5.47% pa

5.77% pa

+30bps

Standard Investor Principal and Interest

5.80% pa

5.80% pa

-

Standard Investor Interest Only

5.94% pa

6.24% pa

+30bps

Commonwealth Bank of Australia published this content on 27 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 June 2017 13:54:09 UTC.

Original documenthttps://www.commbank.com.au/guidance/newsroom/Commonwealth-Bank-changes-home-loan-interest-rates-201706.html?ei=card-view

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