NAB cuts home loan rates as economics team makes case for RBA 50bps cut in May
NAB has gone big on its fixed rate home loan cuts with its lowest advertised fixed rate now 5.39% p.a. (6.30% p.a. comparison rate*) for three years for loan-to-value ratios (LVRs) 70% or less.
The cuts should come as no surprise in a week where NAB economists boldly forecast the next Reserve Bank of Australia rate movement in May would see the cash rate slashed by 50 basis points to 3.60%.
But that was just the start - NAB also expects there will be consecutive follow-up cuts of 25 basis points in July, August, November, and February, when the cash rate will land at 2.60% p.a.
It's important to note these forecasts were delivered right before President Trump announced a 90-day moratorium on some tariffs, but not China's; consequently the US' S&P 500 skyrocketed, posting some of its strongest rebounds since the 2007-09 recession.
It's heady stuff in a week where financial markets were plunged into turmoil by US president Trump's on again-off again trade tariffs.
See all this week's home loan rate movements: Home Loan market malaise sets in, NAB cuts, Suncorp increases
At last check, the US tariffs are being delayed by 90 days on all except China which has been hit with a 145% tariff rate - but, of course, all this may be subject to sudden change.
Here's a look at NAB's new Tailored fixed home loan rates for owner occupiers and investors with 80% LVR making principal and interest (P&I) repayments:
| Product | % change | New rate | Comparison rate* |
| OO 1 year P&I 80% LVR | -0.55 | 5.54% p.a. | 6.70% p.a.* |
| OO 2 years P&I 80% LVR | -0.45 | 5.44% p.a. | 6.57% p.a.* |
| OO 3 years P&I 80% LVR | -0.45 | 5.39% p.a. | 6.44% p.a.* |
| OO 4 years P&I 80% LVR | -0.40 | 5.79% p.a. | 6.48% p.a.* |
| OO 5 years P&I 80% LVR | -0.45 | 5.79% p.a. | 6.41% p.a.* |
| Investor 1 year P&I 80% LVR | -0.50 | 5.69% p.a. | 6.98% p.a.* |
| Investor 2 years P&I 80% LVR | -0.40 | 5.59% p.a. | 6.83% p.a.* |
| Investor 3 years P&I 80% LVR | -0.40 | 5.59% p.a. | 6.71% p.a.* |
| Investor 4 years P&I 80% LVR | -0.40 | 5.99% p.a. | 6.74% p.a.* |
| Investor 5 years P&I 80% LVR | -0.45 | 5.99% p.a. | 6.66% p.a.* |
It was a busy week for NAB rate fixers who also joined the other big banks and a swag of smaller banks in slashing their term deposit interest rates this week.
Suncorp goes the other way
In a curious move, the rate fixers at ANZ-owned Suncorp have gone the other way, adjusting their Back to Basics and Home Package Plus special offer variable rates two basis points higher.
The best new rate is 5.90% p.a. (5.91% p.a. comparison rate*) for a Back to Basics Better Together loan, but that's with an LVR of 60% or less for those making P&I repayments.
Here's a snapshot of the new Suncorp 'special offer' rates for 80% LVR borrowers making P&I repayments:
| Product | % change | New rate | Comparison rate* |
| Back to Basics Better Together 80% LVR P&I | +0.02 | 5.91% p.a. | 5.92% p.a.* |
| Investor Back to Basics Better Together 80% LVR P&I | +0.02 | 6.11% p.a. | 6.12% p.a.* |
| Home Package Plus 80% LVR P&I | +0.02 | 6.02% p.a. | 6.37% p.a.* |
| Investor Home Package Plus 80% LVR P&I | +0.02 | 6.21% p.a. | 6.56% p.a.* |
Rates drop for lower LVRs and increase substantially for LVRs between 80.01 and 90%.
Suncorp's current special offer on its Package Plus home loan is a waiver of its annual fee which the bank says will save $11,250 over a 30 year loan term.
The fine print reveals the annual fee of $375 will be charged and reimbursed while the package is active, with the special offer deal subject to change at any time.
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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. | 5.95% 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 |
