The Commonwealth Bank has topped the majors with its standard variable rate after delivering the lowest home loan comparison rate among the major banks.
CBA’s latest comparison rate on its standard variables sits at 5.86 per cent just slightly ahead of National Australia Bank’s 5.87 per cent.
The low comparison rate comes after the RBA slashed rates by 1 per cent at its board meeting this month.
While all the big banks passed on the full 1 per cent rate cut, a spread of 0.17 per cent remains between their new standard variable home loan rates, and 0.19 per cent on their comparison rates.
St George will now have the highest comparison rate among the majors of 6.05 per cent while ANZ and Westpac will offer comparison rates of 6.01 and 6.04 per cent respectively.
The RBA is widely expected to reduce the cash rate further in coming months to some of the lowest levels that borrowers have ever seen.
Source: Mortgage Business
