Commonwealth Bank has cut its standard variable home loan interest rate by 20 basis points, equalling National Australia Bank's move.
CBA on Friday said it will reduce its variable rate on home loans to 6.6 per cent on October 12.
NAB earlier lowered its standard variable home loan rate by 20 basis points to 6.58 per cent on Monday.
While home owners are likely to welcome reduced payments on their mortgages, both banking giants failed to match the 25 basis point cut the Reserve Bank made to the cash rate on Tuesday.
CBA said it needed to balance the needs of 1.8 million home loan borrowers with those of its 11 million deposit customers and shareholders.
"One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia's most recent Financial Stability Review," CBA said in a statement.
"This increase, benefiting depositors, has resulted from increased competition for deposits, as Australian banks reduce their reliance on wholesale funding."
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