The Commonwealth Bank joined other big lenders in cutting rates for owner-occupiers with principal and interest home loans and increasing them for interest only loans.
The standard variable rate has been cut of three basis points to 5.22%.
About 80% of owner-occupiers are repaying principal and interest. Those with an average mortgage of $350,000 will save $78 a year.
However, owner-occupiers and investors with a variable interest only home loan will see their rates increase by 30 basis points.
The move supports APRA’s moves to manage the level of growth and resiliency in the housing market. APRA’s limit on new interest only lending is 30% of new residential mortgage lending.
The new rates, effective from July 7:
Earlier this month, the ANZ announced a five basis point cut in variable interest rates for those paying principal and interest on their home loans, taking the standard variable rate to the lowest of major banks at 5.20%.
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