The National Bank of Australia (NAB) has implemented a range of cuts in fixed and new customer variable rates, chasing down Westpac Australia on home loan rates.
NAB, Australia’s third largest bank, has dropped its lowest variable rate by 0.15% to 2.69%, and its lowest fixed rate by 0.10% to 2.19%.
The latest cuts have placed NAB’s home loan rates, along with Westpac’s, as the lowest among the big four. However, NAB customers only need a 20% deposit for the rates whereas Westpac requires a 30% deposit.
NAB rate changes – owner-occupiers
Home loan
Old rate
New rate
Change
Variable rate base
2.84%
2.69%
0.15%
Choice package fixed rate – 1 yr
2.39%
2.29%
0.10%
Choice package fixed rate – 2 yr
2.29%
2.19%
0.10%
Note: rates are for owner occupiers paying principal and interest for new customers or customers who switch to fixed
NAB rate changes – investors
Home loan
Old rate
New rate
Change
Choice package fixed rate – 1 yr
2.69%
2.59%
0.10%
Choice package fixed rate – 2 yr
2.59%
2.49%
0.10%
Note: rate changes are for investors paying principal and interest
Data from RateCity.com.au revealed that more than 330 fixed rate home loan rates have been cut, while almost 160 variable rates for new customers have dropped since 1 May.
Sally Tindall, RateCity.com.au research director, said NAB was determined to stay competitive to keep new business cycling through the door.
"It’s game on between the banks," she said. “Thursday’s cuts from NAB are the latest move in an interest rate war that’s yet to show any clear sign of bottoming out.”
Tindall added that all eyes are now on Commonwealth Bank of Australia (CBA) and Australia and New Zealand Banking Group (ANZ) to see “if they will take the bait and follow suit.”
“They’ve all seen the spike in refinancing and want to make sure they get their fair share of business. Particularly as new home lending is falling, ”she said. “The home loan rate war is great news for mortgage holders in a position to refinance, with some of the lowest rates Australia has ever seen.”
Big Four Bank lowest rates
Lender
Advertised variable
Advertised 2-yr fixed
Advertised 3-yr fixed
CBA
2.79%
2.29%
2.29%
Westpac
2.69% *
2.19% *
2.19%
NAB
2.69%
2.19%
2.29%
ANZ
2.72%
2.29%
2.29%
Note: Rates are for owner occupiers paying principal and interest.
* Westpac’s rates are for customers with a loan-to-value ratio of less than 70%
Top Suburbs:
leumeah
,
north lambton
,
scarborough
,
balga
,
hebersham
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously – you can check out
our privacy policy here
