As of today (Thursday 18 March), NAB cut various fixedinvestment, interest-only and package home loans by up to 15 basis points. 

The lowest rate among the affected loans is 1.89% p.a (3.97% p.a. comparison rate*), belonging to the Choice Package Tailored Fixed loan for two years, paying principal and interest (P&I).

Another NAB loan cut to the sub 2% mark is the Tailored Fixed loan for two years (P&I), with an advertised rate of 1.99% p.a (4.20% p.a. comparison rate). 

Other rate cuts are as follows:

  • NAB Inv Tailored Fixed - IO in arrears 2 yrs: 10 basis point cut to 2.59% p.a (4.87% p.a. comparison rate*)
  • NAB Inv Tailored Fixed  - P&I 2yrs: 15 basis point cut to 2.39% p.a (4.75% p.a. comparison rate)
  • NAB Choice Package Inv Tailored Fixed - IO in arrears 2 yrs: 10 basis point cut to 2.49% p.a (4.60% p.a. comparison rate*)
  • NAB Choice Package Inv Tailored Fixed - P&I 2 yrs: 15 basis point cut to 2.29% p.a (4.51% p.a. comparison rate*)

The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

These cuts by NAB follow a plethora of recent rate cuts, many of which were made to two year fixed loans just as all the above are. 

In recent months, fellow big four banks Westpac and Commonwealth Bank had each cut at least one home loan rate to below 2% p.a - only ANZ is yet to do so

Westpac's was arguably the most notable, as it cut its fixed home loan rate for P&I, two-year fixed owner-occupied borrowers to what was the lowest interest rate on the market at the time

However the record was short lived, as just yesterday Homestar Finance knocked Westpac off its perch by cutting its owner-occupier fixed rate by 14 basis points to a market leading rate of 1.74% p.a. (2.23% p.a. comparison rate*). 

Homestar also boasts one of the lowest variable rates on the market at 1.79% p.a (1.84% p.a comparison rate), while Greater Bank has the lowest fixed-rate on the market overall with a one year fixed-rate of 1.69% p.a (3.49% p.a. comparison rate*), according to Savings.com.au's analysis. 

UBank has the lowest three-year fixed rate at 1.75% (2.22% p.a. comparison rate*), the market analysis also found. 

These ultra-low fixed rates have caused more borrowers to choose fixed over variable, with the likes of CommBank indicating that its fixed loan book grew 38% in the second half of 2020 compared to the first half.

However this could be set to change when the Reserve bank reshapes its 'term funding facility' (TFF) in June

 

Image source: NAB





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