Commonwealth Bank cuts interest rate on fixed rate loans

The interest rate on a number of Commonwealth Bank fixed rate loan products has been decreased.

The Commonwealth Bank has decreased its interest rate on a variety of its products.

The biggest cut sees the three-year fixed rate option reduce by 0.45 per cent to a new level of 7.44 per cent from 7.89 per cent.

Ross McEwan, group executive of retail banking services at the organisation - which offers Commonwealth Bank credit cards - said the institution is pleased to produce competitive rates to customers who want peace of mind and the certainty of a fixed rate on their home loan.

Moreover, the interest rate on the two-year product has dropped by 0.25 per cent from 7.54 per cent to 7.29 per cent and the firm's four and five-year offerings have both decreased by 0.15 per cent.

This news comes after the institution upped the interest rate on two of its savings accounts - the NetBank Saver and Business Online Saver - by 0.25 per cent per annum in April.

By Emma North