Commonwealth Bank is cutting investment property interest rates and minimum loans on some mortgage products by more than 90%.

 

CBA, which writes one in four property loans, is cutting rates on its “extra home loan” and “extra investment home loan” products by 40 basis points to 4.24% and 4.51% respectively. The bank’s standard variable rate is 5.35%.

 

The loans – which can be principal & interest and interest only – are aimed at owner-occupied dwellings, investment housing, off the plan purchases and building & construction.

 

It is cutting the minimum loan amount on its top-up “extra home loan” product – which is aimed at retaining borrowers planning building or renovations – from $150,000 to $10,000.

 

It comes as around 160 home loan products – both owner-occupied and investor – slip below the benchmark 4%, encouraging property buyers to shop around for best rates.

 

“There is a mortgage war out there,” says Martin North principal of Digital Finance Analytics, a consultancy for major banks and finance service providers.