How has CommBank responded to the February RBA rate cut?

With inflation showing signs of moderating, the Reserve Bank of Australia (RBA) has delivered its first rate cut down to 4.10% after holding the cash rate at 4.35% since November 2023.

Official interest rates have remained at this level for over a year, following the aggressive tightening cycle that included thirteen consecutive hikes.

Borrowers comparing home loans with the Big Four will be keen to know how any potential cuts might flow through from Australia's largest bank, Commonwealth Bank.

What is CBA doing about rate cuts?

Commonwealth Bank has announced it will pass on the RBA's 0.25% rate cut in full to its variable home loan customers, with the changes to take effect from February 28, 2025.

Even with a reduction of rates, borrowers still have to deal with a relatively high cash rate for a bit longer - at least much higher than it was a few years ago when at 0.10% (in 2022).

Meanwhile, CBA has made efforts to stay ahead in the home loan market, especially regarding refinancing with its digital home loan Unloan.

This fee-free, variable rate home loan still offers its signature feature of shaving 0.01% p.a. off the interest rate every year for up to 30 years (T&Cs apply). It's available to refinancers only with at least 80% LVR for the best rates. Keep in mind that LVR’s of 80.01% - 90% will require LMI .

You can stay updated with moves made by the other Big Four members, or check out our RBA rate tracker hub.

How will the rate hike affect you? Check with our new rate change calculator

Looking for a home loan? Head over to our home loans comparison hub for more information on how the RBA rate change has affected offers.