Annual inflation in Australia slowed to 2.1% in June, the lowest since March 2021, with the underlying rate of 2.7% landing well within the RBA's target range. This signals that cheaper financing options could be coming soon for borrowers.
As inflation nears the central bank's 2.5% target, experts say a rate cut is justified, and the big four banks are in agreement, all predicting the RBA's next move will be a 0.25 percentage point adjustment.
With positive price signals afoot, quite a few lenders have moved to make their fixed-rate home loans more attractive.
NAB cuts select fixed loans
NAB has cut up to 25 basis points from its Tailored Fixed and Investment Tailored Fixed home loans. The largest cuts of 25 basis points target P&I loans with LVRs above 60% on two-year fixed terms, bringing rates down to as low as 5.19% p.a. (6.16% p.a. comparison rate*).
Meanwhile, investors looking to fix for two years can now lock in a low 5.34% p.a. (6.43% p.a. comparison rate* for LVR up to 70%, 6.59% p.a. for LVR 70-80%)
NAB has matched ANZ for the lowest two-year fixed rate among the big four banks at 5.19% p.a. (6.44% p.a. comparison rate*), undercutting both Commonwealth Bank and Westpac.
The bank also announced changes to how it assesses Higher Education Loan Program (HELP) debts. This adjustment could boost borrowing power for some first home buyers, making it easier for them to access finance and take advantage of the new, lower rates.
NAB's economics team forecasts a series of rate cuts, anticipating the cash rate will decrease to 3.60% by September 2025, 3.35% by December 2025, and 3.10% by March 2026.
Other movers
- Bendigo Bank reduces rates on its Investment Complete Fixed Home Loan by as much as 0.45%.
- Bank Australia cuts fixed rates across residential, investment, and clean energy home loans by up to 0.45%.
- Qudos Bank trims rates on residential and investment fixed loans, including value package products, by as much as 0.20%.
- Bank of China lowers fixed and investment fixed home loan rates by up to 0.40%.
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Looking to see how these rate cuts stack up? Below is a selection of competitive, primarily variable-rate mortgages in the market.
| 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 |
