Remaining majors join fixed-rate cut trend

Photo by Melissa Walker Horn on Unsplash

Majors and non-majors are scrambling to keep their rates competitive after Westpac and CBA recently implemented significant rate cuts.

NAB and Virgin Money are the latest in a long line of lenders to drop their fixed mortgage rates, with Heritage Bank, Westpac, CBA, and Bendigo Bank also announcing reductions of up to 40 basis points over the past few weeks.

Key NAB rate changes

NAB has announced fixed mortgage rate cuts for both new and existing customers across its Tailored Home Loan (Choice Package) for both owner-occupiers and investors.

The rate changes, which are effective from 18 April 2019, are as follows:

• Owner-occupied principal and interest fixed rates have been cut by up to 10 basis points, with rates now beginning from 3.79%.
• Owner-occupied interest-only fixed rates have been cut by up to 10 basis points, with rates now starting from 4.29%.
• Investment principal and interest fixed rates have been cut by up to 20 basis points with rates now starting from 3.89%.
• Investment interest-only fixed rates have been cut by up to 36 basis points, with rates now starting from 4.09%.

Key Virgin Money rate changes

Meanwhile, Virgin Money has also announced fixed mortgage rate cuts across its owner-occupied and investments home loan products.

The rate changes, which are effective from 18 April 2019, are as follows:

• Owner-occupied principal and interest fixed rates have been cut by up to 40 basis points, with rates now starting from 3.69% (3.90 comparison rate)
• Investment principal and interest fixed rates have been cut by up to 40 basis points, with rates now starting from 3.89% (4.17 per cent comparison rate)
• Investment interest-only fixed rates have been cut by up to 30 basis points, with rates now starting from 3.89% (4.14 per cent comparison rate)

“We want to help our customers reach their home ownership dreams without having to compromise on their lifestyles. So we’ve positioned our rates competitively, offering both flexibility and value regardless of whether they’d prefer a variable and/or fixed rate home loan,” Virgin Money’s general manager of lending, cards and deposits, Johnny Lockwood said.

Virgin Money is also offering double Velocity frequent flyer points on eligible new applications for the Reward Me home loan.

NAB and Virgin Money just the latest in a long line of lenders to reduce rates

These two banks aren’t the first, and likely won’t be last, to lower their home loan interest rates.

Earlier this month, Commonwealth Bank and Bendigo Bank dropped interest rates on some of their key home loan products.

Other banks to cut interest rates on a variety of their home loan products include the likes of ING, BOQ, ME Bank, Suncorp, St George Bank, Adelaide Bank, Macquarie, Bankwest and UBank.

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