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In the past five weeks, the bank has lowered the Digi Home Loan’s advertised variable rate three times by 0.06 per cent on 7 May and 0.25 per cent on 30 May following the RBA’s cash rate cut and again by 0.09 per cent on 13 June 13.
CBA online-only investor loan principal and interest now stands at 5.69 per cent, while CBA’s investor loan interest only stands at 5.95 per cent.
In comparison, Westpac and ANZ’s lowest investor variable rates sit at 5.84 and 5.89 per cent, respectively.
While NAB sits at 6.46 per cent, being the only big four bank without an investor variable rate in the 5 per cent, its subsidiary Ubank currently offers a lower rate of 5.74 per cent.
In Australia, the average investor variable rate following the May RBA cut stands at 6.06 per cent, while new customers are estimated to be paying an average of 5.96 per cent.
In addition to CBA, data showed that over a dozen other lenders have cut their investor loan rates by more than 0.25 percentage points since the second RBA’s rate cut in May.
Northern Inland Credit Union currently has the lowest variable investor rate at 5.49 per cent, followed by People’s Choice at 5.54 per cent, while Pacific Mortgage Group and Easy Street both record 5.59 per cent.
In total, data showed that over 30 banks have at least one variable investor rate under 5.75 per cent.
Since mid-2015, investors have typically paid more, driven by APRA’s investor lending restrictions introduced in late 2014, but recent RBA data showed the difference has shrunk to 0.22 percentage points, down from a peak of 0.37 in October 2022.
The gap could narrow further if competition between banks continues to heat up.