Home Loan
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The Commonwealth Bank has slashed its fixed and variable home loan interest rates, following an "ongoing review of our interest rates and market conditions."

Those seeking three-year home loans are expected to get a competitive 5.89% interest rate, which is in line with Westpac's offer. Additionally, the new variable rate borrowers will be offered a reduction of up to 0.35 percentage points to ease financial strain, News.com reported.

The move is in line with Westpac's recent decision to lower its fixed-rate loan prices, with both owner-occupiers and investors enjoying cuts ranging from 0.45 to 0.70 percentage points. Toeing the same line, NAB also lowered its interest rates last month, slashing its 3-year fixed home loan rate to 5.99%.

Homebuyers are expected to reap umpteen benefits from Commonwealth Bank's decision, with spokesperson for the bank saying, "At CommBank we offer a range of tools and features to help customers manage their home loan."

Aside from this, the owner-occupiers will have a one-year fixed rate of 6.19% and a five-year fixed rate of 5.99%, making borrowing more affordable.

The big changes were meant to bring in new business, said Canstar Data Insights director Sally Tindall.

Despite this, borrowers are keeping away from variable rates in hopes of RBA rate cuts next year. The Australia and New Zealand Banking Group will likely follow suit in cutting rates soon.

"While it's unclear just how far fixed rates will fall at this stage, it's highly likely they've still got a way to go," Tindall continued. "We expect to see more fixed rate cuts in the weeks and months ahead, as central banks across the globe cut official rates and wholesale funding pressures hopefully continue to ease."

"The fixed rate tide is continuing to turn as the cost of wholesale funding continues to drop. Over the last fortnight, a total of seven lenders have cut at least one fixed rate," Tindall said, per Nightly.