NAB dropped many of its home loan rates to as low as 5.84% p.a. on Monday, shaving up to 30 basis points off advertised rates.
Both owner-occupiers and investors stand to benefit from the newly-dropped rates, with the most competitive rates available for those fixing for three years.
It comes just days after the big four bank joined its peers in predicting the Reserve Bank of Australia (RBA) will cut the cash rate at its February meeting.
"The [December quarter] CPI confirms that inflation has moderated more quickly than the RBA expected and sets up a likely downward revision to the inflation profile in the February Statement on Monetary Policy," NAB chief economist Alan Oster said on Thursday.
"This now makes February the most likely starting point for a gradual easing in interest rates."
NAB's new fixed rates are now lower than those of CommBank and Westpac, although they still lag behind ANZ's 5.74% p.a. fixed rate for two or three years.
However, when looking beyond the big four banks, NAB's rates arguably pale in comparison.
Many customer-owned banks are offering rates under 5.50% p.a. for select borrowers fixing for two or three years, including BankVic, Australian Mutual Bank, and Community First Bank.
NAB drops fixed rates to as low as 5.84% p.a. for owner-occupiers
NAB's Tailored Home Loan product allows borrowers to lock in their home loan rate for up to five years.
This provides surety against rate hikes, though it limits extra repayments to $20,000 per year.
Additionally, there is an $8 monthly fee for homeowners using the Tailored home loan range.
Monday's cuts to fixed interest rates include:
Fixed period |
LVR | New rate |
Comp rate* |
---|---|---|---|
One year |
≤60% | 6.09% (-20bp) |
6.80% |
70-80% | 6.09% (-25bp) |
6.80% | |
>80% | 6.19% (-15bp) |
6.99% | |
Two years |
≤70% | 5.89% (-15bp) |
6.69% |
70-80% | 5.89% (-20bp) |
6.85% | |
>80% | 5.99% (-10bp) |
6.87% | |
Three years |
≤70% | 5.84% (-5bp) |
6.60% |
70-80% | 5.84% (-10bp) |
6.74% | |
Four years |
≤70% | 6.19% (-5bp) |
6.65% |
70-80% | 6.19% (-10bp) |
6.78% | |
Five years |
≤70% | 6.24% (-5bp) |
6.63% |
70-80% | 6.24% (-10bp) |
6.74% |
Investor mortgage rates dropped by up to 30 basis points
Investors also benefit from NAB's rate cuts, with new rates starting at 5.99% p.a.
For those making principal and interest repayments, the new rates are as follows:
Fixed period |
LVR | New rate |
Comp rate* |
---|---|---|---|
One year |
≤70% | 6.19% (-25bp) |
7.08% |
70-80% | 6.19% (-30bp) |
7.25% | |
>80% | 6.29% (-20bp) |
7.27% | |
Two years |
≤70% | 5.99% (-25bp) |
6.95% |
70-80% | 5.99% (-30bp) |
7.11% | |
>80% | 6.09% (-20bp) |
7.13% | |
Three years |
≤70% | 5.99% (-10bp) |
6.85% |
70-80% | 5.99% (-15bp) |
6.99% | |
>80% | 6.09% (-5bp) |
7.02% | |
Four years |
≤70% | 6.39% (-5bp) |
6.91% |
70-80% | 6.39% (-10bp) |
7.04% | |
Five years |
≤70% | 6.44% (-5bp) |
6.88% |
70-80% | 6.44% (-10bp) |
6.99% |
For those making interest-only repayments, the new rates are as follows:
Fixed period |
LVR | New rate |
Comp rate* |
---|---|---|---|
One year |
≤70% | 6.29% (-25bp) |
7.15% |
70-80% | 6.29% (-30bp) |
7.33% | |
>80% | 6.39% (-20bp) |
7.34% | |
Two years |
≤70% | 6.09% (-25bp) |
7.02% |
70-80% | 6.09% (-30bp) |
7.18% | |
>80% | 6.19% (-20bp) |
7.20% | |
Three years |
≤70% | 6.09% (-15bp) |
6.92% |
70-80% | 6.09% (-20bp) |
7.06% | |
>80% | 6.19% (-10bp) |
7.09% | |
Four years |
≤70% | 6.59% (-5bp) |
7.00% |
70-80% | 6.59% (-10bp) |
7.13% | |
Five years |
≤70% | 6.64% (-5bp) |
6.97% |
70-80% | 6.64% (-10bp) |
7.08% |
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