NAB dropped a bombshell on Friday morning, cutting fixed home loan rates for both owner-occupiers and investors – with new rates starting from 5.39% p.a. 

That's among the most competitive fixed rates on the market – a rare position to find a major lender.

The announcement follows NAB's bold forecast, in which the bank predicted a 50 basis point rate cut from the Reserve Bank of Australia (RBA) in May – a call well outside the current consensus.

Following the monster cut, the bank is expecting four more 25 basis point cuts to be handed down between May and February, leaving the cash rate at 3.60% by early next year.

Both owner-occupiers and investors have been targeted in NAB's latest round of rate cuts.

The lowest rates are on offer to borrowers with loan-to-value ratios (LVRs) of 70% or less who fix their rate for three years and make principal and interest repayments – 5.39% p.a. for owner-occupiers and 5.59% for investors.

NAB slashes up to 55bp from owner-occupier fixed rates

NAB's new rates on its Tailored Home Loan product for owner-occupiers fixing their rate and making principal and interest repayments include:

Fixed period LVR Change New rate Comp rate*
One year ≤70% -55bp 5.54% 6.52%
70-80% -55bp 5.54% 6.70%
>80% -55bp 5.64% 6.71%
Two years ≤70% -45bp 5.44% 6.41%
70-80% -45bp 5.44% 6.57%
>80% -45bp 5.54% 6.59%
Three years ≤70% -45bp 5.39% 6.30%
70-80% -45bp 5.39% 6.44%
>80% -45bp 5.49% 6.47%
Four years ≤70% -40bp 5.79% 6.35%
70-80% -40bp 5.79% 6.48%
>80% -40bp 5.89% 6.51%
Five years ≤70% -45bp 5.79% 6.30%
70-80% -45bp 5.79% 6.41%
>80% -45bp 5.89% 6.45%

NAB's new lowest rate is in line with that offered by Macquarie Bank.

although Macquarie offers the same rate on a shorter, two-year term – potentially more flexible for some borrowers.

Meanwhile, the likes of Australian Mutual Bank currently advertises fixed rates as low as 5.29% p.a. for eligible owner-occupiers.

NAB drops fixed investment mortgage rates to a low as 5.59% p.a.

NAB's new fixed rates for investment home loans aren't quite as competitive as those advertised by Macquarie, which start at 5.55% p.a.

Meanwhile, some mutual lenders are advertising investment rates as low as 5.39% p.a.

Still, NAB's newly cut fixed rates for property investors are worth a gander.

Here's what's on offer for those making principal and interest repayments:

Fixed period LVR Change New rate Comp rate*
One year ≤70% -50bp 5.69% 6.80%
70-80% -50bp 5.69% 6.98%
>80% -50bp 5.79% 6.99%
Two years ≤70% -40bp 5.59% 6.67%
70-80% -40bp 5.59% 6.83%
>80% -40bp 5.69% 6.85%
Three years ≤70% -40bp 5.59% 6.57%
70-80% -40bp 5.59% 6.71%
>80% -40bp 5.69% 6.73%
Four years ≤70% -40bp 5.99% 6.61%
70-80% -40bp 5.99% 6.74%
>80% -40bp 6.09% 6.77%
Five years ≤70% -45bp 5.99% 6.55%
70-80% -45bp 5.99% 6.66%
>80% -45bp 6.09% 6.70%

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Filters
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 TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • 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
5.84% p.a.
5.86% p.a.
$2,947
Principal & Interest
Variable
$0
$250
60%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Easy application. Fast approval. No annual fee.
  • Unlimited additional repayments free of charge.
  • Redraw freely - Access your additional payments.
 Disclosure
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
  • 100% owned by Commbank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 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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