Commonwealth Bank cuts home loan rates

Commonwealth Bank of Australia has trimmed its standard variable home loan rate but shied away from matching the Reserve Bank's 25 basis point cut to its cash rate.

The Commonwealth Bank on Wednesday said its standard variable home loan rates would fall by 20 basis points to 6.4 per cent from December 10.

The move came just hours after its rival, National Australia Bank (NAB), also lowered its standard variable rate by 20 basis points.

The banks lowered their rates a day after the central bank cut the cash rate to three per cent.

The Commonwealth Bank said in making its decision that it had weighed up the needs of its home loan customers with those of its deposit holders and shareholders.

"A significant factor impacting this balancing of needs has been the increased competition in the domestic deposit market, which has benefited many customers, including those who rely on interest earnings to meet their living expenses," the bank said in a statement.

NAB has promised to offer the lowest standard variable home loan rate of the big four banks until the end of 2012.

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