- NAB has cut its one and two year fixed home loan rates
- The reduced rates apply to owner occupiers and investors with loan-to-value ratios of up to 80%
- The cuts follow other lenders reducing both fixed and variable rates amid a sluggish home loan market
NAB has reduced fixed rates on its shorter-term Tailored home loan products for both owner occupiers and investors with deposits of at least 20%.
The big bank's lowest advertised fixed rate is now 6.34% p.a. (6.93% p.a. comparison rate* <70% LVR; 6.98% p.a. 70-80% LVR) for new owner occupiers fixing for two years and making principal and interest (P&I) repayments - a cut of 20 basis points.
Here's a look at NAB's new fixed rates for owner occupiers making P&I repayments:
| Term | LVR | New rate (% change) | Comparison rate |
| 1 year | ≤60% | 6.44% p.a. (-0.05) | 6.88% p.a. |
| 60-70% | 6.44% p.a. (-0.05) | 6.88% p.a. | |
| 70-80% | 6.44% p.a. (-0.05) | 7.06% p.a. | |
| 2 years | ≤60% | 6.34% p.a. (-0.20) | 6.83% p.a. |
| 60-70% | 6.34% p.a. (-0.20) | 6.83% p.a. | |
| 70-80% | 6.34% p.a. (-0.20) | 6.98% p.a. |
Investor fixed home loans for both P&I and interest-only (IO) repayments have been cut across the board by 15 basis points.
The best new fixed rate for investors is 6.44% p.a. (7.08% p.a. comparison rate <70% LVR; 7.24% p.a. 70-80% LVR) for those making P&I repayments and fixing for two years.
Big banks taking fixed rates lower
NAB's changes follow the comparatively bold move by Macquarie Bank to slice up to 50 basis points off its fixed home loan rates on 5 June.
Macquarie's best advertised rate for owner occupiers is 6.09% p.a. (6.11% p.a. comparison rate) for borrowers with up to 70% LVR and fixing for three years.
ANZ also made modest fixed rate cuts in June, taking five to 10 basis points off select rates.
A slew of smaller lenders have also dropped variable and fixed rates in recent weeks in a bid to win business amid a sluggish mortgage market.
Many lenders made their move well before the Reserve Bank's decision to hold the cash rate at 4.35% on 16 June, following three consecutive rate hikes in 2026.
The next cash rate decision is due on 11 August with markets currently pricing in a 19% chance of a rate increase in August.
Market forces at work
But home loan interest rate movements are not always dictated by cash rate calls.
Lenders may be motivated to lower their rates in competitive markets - or, in the current climate, when times are quiet.
New data from credit reporting agency Equifax shows home loan applications were down 14% in June compared to the previous year.
First homebuyer applications were down even further at 17.2%, effectively dousing the momentum sparked by the federal government's expanded 5% Deposit Scheme.
Equifax data showed mortgage demand began tanking in May in the wake of three cash rate hikes and investor tax changes announced in the federal budget.
See also: Home lending dips in 2026, even before the federal budget
Property data confirms the housing market has gone backwards in Australia's two biggest cities - Sydney and Melbourne - while growth has slowed in other markets.
See also: Australia's housing boom hits a wall as prices tip and profits peak
Over to the Reserve Bank
While lenders can go their hardest to spark new business in a stagnant market, all eyes will be on the Reserve Bank's next move on the cash rate.
The decision will likely hinge on key quarterly inflation data due next week while June jobs figures, out on Thursday, will also be considered.
See also: Inflation and jobs data for May
While many economists and markets are widely expecting another hold to the cash rate, Westpac economists have been hawkish on an August rate hike for some months.
Earlier this month, Westpac doubled down on its August rate hike forecast, saying its "conviction had increased" following communications from senior Reserve Bank officials and the central bank's propensity to "front-load" responses to inflation risks.
However, Westpac gave itself a get-out clause, saying its confirmation of an August rate hike remains subject to next week's Consumer Price Index data.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
