Commonwealth Bank has moved to further rebuild its profit margins by cutting the discounts on new home loan applications.

In a note to mortgage brokerson Monday, the country’s biggest home lender said it was cutting discounts by 15 basis points on two products — its mortgage advantage packaged owner-occupied and investment home loan applications.

Discounts were also cut by 8 basis points on other products, including the three-year special rate saver loan.

The note blamed increased funding and capital costs on the bank’s home lending portfolio.

A CBA spokesman said the bank constantly reviewed its home loan products and interests to ensure it was maintaining prudent lending standards and meeting customer needs.