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CBA offers free internet to home loan customers as interest rates soar

One of Australia’s major banks has made an unexpected offer to some customers as interest rates are tipped to skyrocket.

Banking giant CBA will offer some customers free internet for three years in a bid to help ease cost of living pressures.

In partnership with telecom provider More, the lender is offering eligible conditionally pre-approved home loan customers access to a free NBN plan for three years.

The 36-month NBN plan could save eligible homeowners more than $2700, and comes as experts sound the alarm over looming interest rate hikes in the months ahead.

CBA is also offering all of its existing customers 30 per cent off More NBN plans for the first 12 months when they sign up using their credit or debit card as their bill payment method.

Dr Michael Baumann, Executive General Manger of Home Buying, said the offer was designed to help Aussies doing it tough.

“We know that the rising cost of living is being felt by all Australians, particularly those looking to purchase a property in the current environment,” he said.

“We want to support pre-approved home loan customers where we can, and that includes longer-term savings on essential and ongoing bills and commitments like internet.”

It comes as recent research from CBA revealed most homeowners were preparing for future rate rises, with one-third looking to cut costs by shopping around for cheaper utilities providers.

“What the research tells us is that Australians want value from their lender and in a way that is tailored to their needs,” Dr Baumann said.

“We’re also hearing from our customers that they want to save some money, take advantage of a great offer, and make their dollar stretch further, particularly on every day and ongoing commitments.”

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Andrew Branson, co-founder of More, said the deal would help those trying to stretch their household budgets further.

“Enjoying free internet for three years and having an extra $2700 in your back pocket is an unbelievable offer for homeowners and property investors, as you don’t need to connect the NBN at the address where the loan is settled,” he said.

“This type of customer benefit has never been seen before and hats off to CBA for trying something new that will make a meaningful difference to their customers who are facing rising cost of living pressures.”

The offer comes as Australians prepare for the Reserve bank to hike the official cash rate once again when the Board meets for its June meeting tomorrow.

It’s widely expected the cash rate will rise by either 25 or 40 basis points, which would see the nation’s official cash rate move from 0.35 per cent to either 0.60 or 0.75.

But that’s just the tip of the iceberg, with some experts bracing for interest rates to rise to 2.5 per cent by the end of 2022.

In fact, senior economist at Nomura Australia and rate strategist Andrew Ticehurst recently told The Daily Telegraph they believe rates will increase monthly until December, meaning we could be in for a rate rise every month until Christmas.

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