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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Update resultsUpdate
LenderHome LoanInterest 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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
Disclosure
5.99% p.a.
6.44% p.a.
$2,995
Principal & Interest
Variable
$0
$530
90%
  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
Disclosure
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 .

Important Information and Comparison Rate Warning

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