The Commonwealth Bank has axed its fixed interest rates after returning dominant home lending figures.
The biggest cut was to fixed rates for property investors, which were slashed by 0.5 percentage points.
The bank recently returned a surprise half-year profit of $4.5 billion, sending their share price above $90 – nearly a five-year high.
CBA also cut their fixed rates for owner-occupiers, from between 0.1 to 0.3 percentage points.
Canstar finance expert Steve Mickenbecker said other banks would likely follow suit to keep pace.
“They’ve got to wrest some of that market share back from CBA,” he told Sydney Morning Herald.
“They cannot let that happen.”
The Commonwealth Bank’s mortgage growth is tracking at 1.5 times the industry average.
Morningstar analyst Nathan Zaia told the Sydney Morning Herald the CBA had benefitted from mistakes from other banks in mortgage lending.
“It’s only a matter of time until rivals get things heading in the right direction again,” he said.
The CBA’s highest ever share price was $96.69 back in 2015.
