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CBA cuts fixed rates on mortgages


Commonwealth Bank has cut interest rates on its fixed-rate home loans to a 22-year low.

The bank also has promised to beat the advertised fixed rates of its three major rivals.

Rates on new fixed-rate mortgages, for one to five years, have been reduced by up to 30 basis points, CBA said on Friday.

The rates on new fixed-rate home loans now ranged from 5.39 per cent to 5.69 per cent, the lowest offered by CBA for more than 22 years, the bank said.

An increasing demand for fixed-rate home loans has led to several cuts in fixed rates by the banks in recent months.

Meanwhile, ANZ on Friday is expected to announce a cut to its variable home loan rates after holding its monthly interest rate meeting.

The Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points on October 2, and ANZ's rivals have all since reduced their variable rates.

NAB and CBA cut by 20 basis points, while Westpac reduced its rates by 18 basis points.