CBA cuts variable mortgage rates

The Reserve Bank held off making any change to the cash rate yesterday but Commonwealth Bank took the opportunity to make some changes of its own, including cuts to variable mortgage rates.

Canstar reports that CBA has cut the basic variable rate by 18 basis points for owner occupiers paying either principal and interest or interest only and with loan-to-valuation ratios below 70 per cent. The new rate is 2.79 per cent.

For owner occupiers paying either P&I or interest only and with an LVR between 70 and 80 per cent, the basic variable rate has been cut 28 bps. The new rate is 2.79 per cent.

CBA increased the rate for borrowers on higher LVRs. For borrowers with LVRs between 80 and 95 per cent, paying P&I or interest only the basic variable rate has been increased six bps to 3.13 per cent.

For investors the basic variable rate for borrowers with LVRs between 70 and 80 per cent was cut 15 bps, but for borrowers with LVRs between 80 and 90 per cent the basic variable rate has been increased 12 bps.