NAB, ANZ, Beyond Bank, & People's Choice slash fixed home loan rates

NAB and ANZ reduced many of their fixed rates this week, while People's Choice is officially offering one of the most competitive fixed deals on the market, and it's exclusively available to first home buyers.

Fixed rate reductions aren't anything new, however.

Lenders have been scrambling to cut fixed rate offerings in recent months amid expectations of central bank cuts - expectations fuelled by the minutes of the Reserve Bank of Australia (RBA) board's September meeting.

In August, the board deemed "it was unlikely that the cash rate target would be reduced in the short term," – but its stance appears to have changed, as that line wasn't included in the recently-released minutes of its September meeting.

Perhaps it's unsurprising, then, that mortgage borrowers aren't rushing to fix their rates.

The latest data from the Australian Bureau of Statistics - released late last week - shows just 2% of home loans written in August had a fixed rate attached.

If you're looking to buck the trend, you might find newly cut interest rates too tempting to pass up:

NAB slashes fixed rates by as much as 65 basis points

First up, big four bank NAB slashed many of its home loan interest rates in the wake of its new RBA prediction.

NAB economists updated its forecast for the first RBA cash rate cut earlier this month.

They now predict a downwards move in February 2025 – previously May 2025.

NAB slashed many of its home loan interest rates shortly after this update, with cuts of up to 65 basis points put forward this week.

Here're the rates on offer from NAB to owner-occupiers looking to fix their home loan interest rate:

Fixed period	LVR	Change	New rate	Comparison rate*
One year	≤70%	-40bp	6.29%	6.82%
	>70%	-40bp	6.34%	7.00%
Two years	≤70%	-55bp	6.04%	6.72%
	>70%	-55bp	6.09%	6.89%
Three years	≤70%	-10bp	5.89%	6.62%
	>70%	-10bp	5.94%	6.77%
Four years	≤70%	-50bp	6.24%	6.67%
	>70%	-50bp	6.29%	6.81%
Five years	≤70%	-50bp	6.29%	6.65%
	>70%	-50bp	6.34%	6.34%

ANZ slashes fixed rates by up to 70 basis points 

Joining NAB in its cutting action on Friday morning was big four peer ANZ. 

While it dropped rates on many of its offerings by as much as 70 basis points, its lowest advertised fixed rate (5.99% p.a.) isn't quite as eye catching as the lowest rate on offer from NAB and Westpac – 5.89% p.a. 

Here are the some of the changes the smallest of the big four banks has made for owner-occupiers seeking a fixed rate home loan:

Fixed period	LVR	Change	New rate	Comparison rate*
One year	≤80%	-30bp	6.39%	7.15%
	80-90%	-30bp	6.44%	7.34%
Two years	≤80%	-55bp	5.99%	6.99%
	80-90%	-55bp	6.04%	7.16%
Three years	≤80%	-60bp	5.99%	6.88%
	80-90%	-60bp	6.04%	7.04%
Four years	≤80%	-60bp	6.14%	6.84%
	80-90%	-60bp	6.19%	6.98%
Five years	≤80%	-60bp	6.24%	6.80%
	80-90%	-60bp	6.29%	6.93%

Beyond Bank cuts some fixed rates by half a percentage point 

Despite NAB and ANZ's lower rates, none of the big four banks are advertising rates that compete with the broader market's best offers.

This was evident this week, as Beyond Bank slashed some of its fixed rates by as much as 50 basis points.

New rates on the mutual bank's Total Home Loan Package for owner-occupiers with loan-to-value ratios (LVRs) of 80% or less include:

Fixed rate period	Change	New rate	Comparison rate
One year	-10bp	6.09%	7.95%
Two years	-15bp	5.79%	7.72%
Three years	-25bp	5.69%	7.52%
Four years	-50bp	6.09%	7.50%
Five years	-50bp	6.09%	7.37%

The Total Home Loan Package comes with an offset account and allows up to $25,000 of extra repayments each year at a cost of a $395 annual fee.

Heritage Bank & People's Choice slash fixed home loan rates

Heritage Bank and People's Choice merged last year and promise to soon be trading under a new name: People First Bank.

Until then, the pair are offering similar, but not identical lending products, and the latter lender just unveiled one of the most competitive fixed rates out there.

People's Choice now promises a rate of just 5.39% p.a. to eligible first home buyers fixing their rate for three years.

Changes to People's Choice's special offer product are as follows:

Product	LVR	Change	New rate	Comparison rate*
Home Loan Package First Home Buyer Fixed for three years	>80%	-40bp	5.39%	6.26%
Home Loan Package First Home Buyer Fixed for three years	<80%	-40bp	5.79%	6.65%

Meanwhile, the newly cut rates on Heritage Bank's basic fixed rate product for owner-occupiers are among the lowest in its line up:

Fixed rate period	Change	New rate	Comparison rate*
One year	-25bp	5.89%	6.55%
Two years	-20bp	5.79%	6.49%
Three years	-40bp	5.49%	6.37%
Five years	-50bp	5.49%	6.26%

Other movers

• Queensland Country Bank shakes up its fixed rate offers by as much as 90 basis points
• Community First Bank dropped the rate on its special offer three year fixed Accelerator Packaged home loan by 10 basis points to 5.49% p.a. 

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