CBA has hiked all of its fixed rates, the third such rise in just six weeks. The cheapest prices the lender will now offer for fixed rates is 2.49% for one year and 2.59% for two years – both rates that had previously been priced at 2.34%.
The biggest increase was in three-year and five-year fixed, with those rates going up 30 basis points to 2.99% and 3.39% respectively. The four-year rate rose by 20 points to 3.09%.
It continues the trend of fixed rate rises that has been seen across the Big Four since it became clear that the Reserve Bank of Australia (RBA) was abandoning its commitment to a cash rate rise in 2024.
CBA moved in advance of the cash rate on October 15, moving their mid-term fixed by 10 points, and then went again massively after the RBA call was made, adding a full 50 basis points to all their rates.
CBA now has the highest rate in every category of fixed and is equal with NAB and ANZ on variable.
"Today we are announcing some changes to select fixed rate home loans," said a CBA spokesperson. "These changes reflect the continued increase in funding costs.To support customers during a rising rate environment, we encourage them to get ahead of their repayments."
"Our fixed rate customers can make additional repayments of up to $10,000 p/year which can save them significant interest over the life of their loan. Customers who are applying for a home loan are also encouraged to consider a rate lock. Rate lock might be suitable for customers who are considering a fixed rate and ensures that the interest rate is locked in at the time of application so they are not impacted by rate increases."
"We have seen around a tenfold increase in customers taking out a rate lock since March 21 which suggests that customers are increasingly preparing for a rising rate environment. Our competitive home loan rates continue to provide value for customers who have access to industry-leading home loan features such as Home Loan Compassionate Care and our 0.99 per cent Green Loan and partnerships with innovative companies including energy retailer Amber and property management company :Different."
"We encourage customers to speak with their CommBank lender or broker to see how we can get them into their home faster. These changes are effective 26 November 2021."
