Banks are updating their floating rates. Macquarie was the first to change, shortly after the RBA rate cut on August 13.
Now ANZ, NAB, and CommBank have also all cut their variable mortgage rates by the same -25 bps. See our rate table for the new levels for each bank for each of their variable rate products.
CommBank however has also chimed in with fixed rate reductions, across both owner occupiers and loans for investment property.
Some of these reductions are rather chunky.
This is a re-setting of their fixed rate levels. CommBank is reducing the premium for interest only at the one year fixed level. The following table is how these changes play out for owner-occupiers.
| CommBank, with package | ||||
| P&I | Interest only | |||
|
% |
bps |
% |
bps |
|
| 1 year | 5.49 | -20 | 5.89 | -35 |
| 2 years | 5.44 | -30 | 5.84 | -25 |
| 3 years | 5.34 | -15 | 5.79 | -15 |
| 4 years | 5.79 | -10 | 6.19 | -15 |
| 5 years | 5.94 | -35 | 6.34 | -20 |
The result of this tweaking is that Commbank is less uncompetitive versus ANZ,Nab, and Macquarie, and is more competitive against Westpac for these same terms.
Westpac however, will be reviewing their rate positioning and those are due on Tuesday, August 26, 2025
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Surprised to see these rates are actually not competitive with NZ.