As of today (Thursday 18 March), NAB cut various fixed, investment, 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.
Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
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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