According to the “Sydney Morning Herald” report, the Commonwealth Bank (CBA) became the first bank to pass the Reserve Bank of Australia’s interest rate cut, and some fixed mortgage interest rates fell to the lowest in history. On Tuesday, the Reserve Bank of Australia lowered the cash rate to 0.1%. CBA’s standard floating interest rate remains unchanged, but the bank announced that it will lower the 4-year fixed mortgage interest rate for owner-occupied buyers by 1% to 1.99%.
CBA said this is their lowest mortgage interest rate in history. In addition, commercial loan interest rates will also be cut by 0.5%, including those who use the government’s small business loan guarantee program. CBA’s Angus Sullivan said that the Reserve Bank of Australia’s economic stimulus policy will give lenders confidence. “The Reserve Bank of Australia’s decision will lower the interest rate structure, giving everyone confidence that Australians can borrow at historically low interest rates for a longer period of time.
We have communicated the interest rate cut to CBA customers, offering them the lowest fixed interest rate we have ever seen. “Although CBA is the first major bank to pass interest rate cuts, there are actually some small lenders who have responded to the Reserve Bank of Australia’s rate cuts. Research published by Canstar on Tuesday showed that Athena, which focuses on mortgages, reduced interest rates by 0.15%. Including Pacific Mortgage Lenders including Group and Homeloans.com.au also lowered interest rates by 0.1% to 0.16%. The Reserve Bank of Australia said that the rate cut will continue for at least three years.
