NAB cut as much as 65 basis points off the advertised fixed rates on its premium packaged mortgage range on Tuesday morning.
It now offers rates as low as 5.89% p.a. for owner-occupiers making principal and interest repayments.
That's officially the lowest home loan interest rate in the bank's wheelhouse, offered on its Tailored product for those signing onto a three year fixed rate period.
Borrowers taking out a fixed rate Tailored home loan can make up to $20,000 of extra repayments each year without penalty and can choose to split their mortgage interest rate.
NAB's rate cut comes just days after the bank shifted its forecast for the first RBA cash rate cut to February 2025 – previously May 2025.
For those keeping their fingers on the pulse of the market, the big four bank is now the first of its peers to make a second home loan rate cut in 2024, having initially dropped rates on many of the same products in July.
How do NAB's newly cut home loan rates compare to market leaders?
Its new leading rate is now in line with the lowest offered by Westpac, but compares poorly to many offers advertised by smaller Australian lenders.
Currently, the lowest interest rate on offer from any mortgage lender appears to be 4.99% p.a. (6.15% p.a. comparison rate*) – promised by tiny mutual SWSBank's premium 'special' 3 year fixed rate loan for those borrowing between $800,000 and $2.5 million.
Hot on its heels is investment banking giant Macquarie, with its 5.39% p.a. (5.95% p.a. comparison rate*) three, four, and five year fixed rate – unveiled last week.
If you're considering a variable rate, Arab Bank is out in front with a special offer interest rate of 5.75% p.a. (5.88% p.a. comparison rate*) on its Basics Home Loan for those borrowing with a loan-to-value ratio (LVR) of 60% or less.
New NAB home loan rates to owner-occupiers
If you're in the market for a home or you're considering refinancing your owner-occupier mortgage, here are the new interest rates on offer from NAB:
| 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% |
New interest rates on the table for property investors
For those considering purchasing a new investment property or looking to refinance their investment home loan, NAB has made these interest rate changes:
| Fixed Period | LVR | Change | New Rate | Comparison rate* |
|---|---|---|---|---|
| One year | ≤70% | -40bp | 6.44% | 7.10% |
| >70% | -40bp | 6.49% | 7.29% | |
| Two years | ≤70% | -50bp | 6.24% | 7.00% |
| >70% | -50bp | 6.29% | 7.17% | |
| Three years | ≤70% | -65bp | 6.09% | 6.88% |
| >70% | -65bp | 6.14% | 7.04% | |
| Four years | ≤70% | -40bp | 6.44% | 6.93% |
| >70% | -40bp | 6.49% | 7.07% | |
| Five years | ≤70% | -40bp | 6.49% | 6.91% |
| >70% | -40bp | 6.54% | 7.04% |
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| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | Featured 4.6 STAR CUSTOMER RATINGS |
| Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | ||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
Image by Mattinbgn via Wikimedia Commons
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