From December 1 the Commonwealth will only lend up to 80 per cent of the value of a home without mortgage insurance. The bank will continue to lend up to 95 per cent of a home loan, but borrowers will have to pay for mortgage insurance.
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Commonwealth Bank
You call that a cut?
The Commonwealth Bank, Australia’s biggest mortgage lender, was the first of the big banks to announce a lowering of its standard variable mortgage rate, by 0.58 of a percentage point to 7.74 per cent. NAB and Westpac followed the Commonwealth Bank’s lead and have not passed on the full 0.75 percentage point cut.
Members Equity Bank has announced it will pass on the full 0.75 percentage point cut to its borrowers. While the big banks’ standard rates are about 7.7 per cent, most borrowers receive a discount of about 0.5 of a percentage point .
Commonwealth Bank reduces home loan interest rates by 0.58%
Our customers can continue to expect additional out of cycle interest rate reductions.” Customers wishing to reduce their repayments to reflect the interest rate reduction or who are seeking some financial advice should contact their branch or our home loan hotline on 13 22 24.
More funds put in deep freeze
As Treasury and the Government worked frantically to find a solution, the Commonwealth Bank’s Colonial First State arm said it had been forced to follow its competitors, including AXA and Perpetual, in freezing redemptions from its six mortgage funds, holding $3.3 billion.
The fallout from the global financial crisis has spread to theoil-rich Middle East, where Kuwait’s central bank had to rescue one of the country’s largest banks and announced a guarantee of bank deposits, signalling the impact of falling world oil prices on a region once considered immune to the crisis.
CBA won’t guarantee rate cut
The country’s largest home lender says it is unable to guarantee matching any further reduction in official interest rates. read more
Aussie-CBA link has a post-sub-prime logic
THERE’S exquisite irony in Aussie Home Loans getting into bed with the Commonwealth Bank. The biggest bank provider of home loans and the biggest non-bank player in the home loan market. Read more of this story at news.com.au
