By Stephen Johnson, Economics Reporter For Daily Mail Australia
Published: 23:18 GMT, 3 November 2020 | Updated: 23:36 GMT, 3 November 2020
The Commonwealth Bank has made history as Australia's first ever major bank to offer a mortgage rate of less than two per cent.
None of the big four banks announced a rate cut on Melbourne Cup day after the Reserve Bank of Australia trimmed the cash rate to a new record-low of 0.1 per cent.
On Wednesday morning, however, the Commonwealth Bank - Australia's biggest home lender - announced it would slash by one percentage point its fixed rate for owner occupiers paying off principal and interest - taking its Wealth Package loan rate down to 1.99 per cent.
'This is CBA's lowest ever advertised home loan rate,' it said.
The Commonwealth Bank has made history as Australia's first ever major bank to offer a mortgage rate of less than two per cent
The huge mortgage reduction will see borrowers with a median capital city mortgage