CommBank moves to challenge competitors in the mortgage market
The Commonwealth Bank of Australia (CBA) has moved to increase its hold in the mortgage market, with a guarantee to beat any advertised interest rate from its three major competitors - ANZ, NAB and Westpac.
The move follows the CBA's decision last week to drop its interest rates on home loans by up to 0.16 per cent for one and three year fixed package interest rate home loans.
The Home Loan Guarantee will be available until the end of September to new customers who borrow a minimum of $100,000 with at least a 10 per cent deposit, as well as existing customers who take out borrowings of $100,000 or more.
"Buying a home is already a complicated and involved process, and we believe finding the best interest rate shouldn't add to that," CBA executive general manager retail products Michael Cant said.
Information on the CBA's Home Loan Guarantee webpage states that the guarantee will exclude subsidiaries and other brands, and applications for the Bank's Home Seeker conditionally pre-approved home loans. The interest rate discount will apply to the relevant reference interest rate until the loan is switched to another loan type or the initial fixed interest rate period expires.
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