Commonwealth Bank has cut interest rates on its fixed-rate loans for home owners and investors as demand for home loans slows.
The cuts apply to a range of fixed-rate home loans, with the biggest cut of 0.3 percentage points to its five-year owner-occupied loan to a new rate of 4.09 per cent.
Figures from comparison site Mozo show that a home buyer with a $400,000 loan would save $4260 over the five-year fixed period.
The cuts by CBA, the country's biggest lender, is further proof that lenders are desperate to lock in new customers, says Sally Tindall, the research director at comparison site RateCity.
She said that about 40 lenders have dropped rates on more than 400 fixed rate home loans since the beginning of this year.
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