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NAB was the first of the big four banks to slash its fixed home loan rates in late July and on Monday, announced another round of cuts by up to 65 basis points.
Its new headline rate is 5.89% p.a. (6.62% p.a.) on a Tailored Fixed Rate home loan for owner occupiers making principal and interest (P&I) repayments for ≤60-70% loan-to-value ratio (LVR) locked in for three years.
NAB's fixed home loans come with no application fees but an $8 monthly service fee.
Australia's third-largest home lender has cut fixed rates across the board for owner occupier and investor Tailored fixed home loans, for both P&I and interest only payment schedules.
Here's a selection of some of the new rates for owner occupiers making P&I repayments:
| Fixed term/ LVR | Rate change (%) | New rate | Comparison rate* |
|---|---|---|---|
| One year 70-80% | -0.40 | 6.34% p.a. | 7.00% p.a. |
| Two year 70-80% | -0.55 | 6.09% p.a. | 6.89% p.a. |
| Three year 70-80% | -0.10 | 5.94% p.a. | 6.77% p.a. |
| Four year 70-80% | -0.50 | 6.29% p.a. | 6.81% p.a. |
| Five year 70-80% | -0.50 | 6.34% p.a. | 6.79% p.a. |
| One year 60-70% | -0.40 | 6.29% p.a. | 6.82% p.a. |
| Two year 60-70% | -0.55 | 6.04% p.a. | 6.72% p.a. |
| Three year 60-70% | -0.10 | 5.89% p.a. | 6.62% p.a. |
| Four year 60-70% | -0.50 | 6.24% p.a. | 6.67% p.a. |
| Five year 60-70% | -0.50 | 6.29% p.a. | 6.65% p.a. |
Fixed rates continue to plummet
Fixed rate home loans have continued to plunge across the market since July, fuelled by falling interest rates on global wholesale funds markets.
Although the Reserve Bank of Australia has not lowered the Australian cash rate since November 2020, many other developed economies have begun their cutting cycles.
This has pushed bank funding costs lower, effectively giving lenders access to cheaper funds on international markets.
So far, lenders have largely chosen to pass this on to consumers through their fixed rate products with interest rates plunging across the market.
Variable home loan rates have shown far less movement over the past few months.
Analysts are not expecting widespread cutting of variable rates until the RBA cuts the cash rate, widely forecast to take place in February 2025.
That's the tip of NAB economists, along with their Westpac and ANZ counterparts, although CommBank remains the outlier among the big four, predicting the first cut to the cash rate in December.
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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 |
