NAB, Teachers Mutual, & Summerland cut variable rates on basic home loans

NAB led the way, cutting up to 60 basis points from the advertised rates on its Base Variable Rate Home Loan product.

Summerland Bank and the Teachers Mutual Bank group also joined in on the action.

Interestingly, however, these cuts to variable home loan interest rates came amid a rise in skepticism over a February 2025 cash rate cut.

NAB – the same bank that cut rates on Thursday – also updated its Reserve Bank of Australia (RBA) cash rate forecast.

It now predicts the RBA board will make its first downward move in May 2025, three months later than its previous, short-lived forecast.

NAB's about-face came in the wake of stubborn labour market data, with unemployment remaining at 4.1% in October.

As inflation and unemployment typically move in opposite directions, a strong unemployment figure might suggest inflation will also remain steady.

So, what variable rate moves occurred in this week of bittersweet news for home loan borrowers? Let's dive in.

NAB slashes 60bp from basic variable rate home loan offerings

The big four bank now advertises variable rates as low as 6.44% p.a. – up to 60 basis points less than those it offered last week.

Both owner-occupiers and investors may be able to take advantage of NAB's fourth rate cut of 2024 and its first variable rate cut since April.

The new variable rates on offer on NAB's basic home loan product as as follows:

Borrower	Change	New rate (p.a.)	Comparison rate* (p.a.)
Owner-occupier P&I	-40bp	6.44%	6.48%
Owner-occupier IO	-60bp	7.34%	6.87%
Investor P&I	-40bp	6.69%	7.00%
Investor IO	-60bp	7.67%	7.32%

Unlike some of NAB's packaged home loan offerings, its basic lineup doesn't charge ongoing fees and doesn't include an offset account, though borrowers do have access to a redraw facility.

Teachers Mutual Bank & Co slash variable rates to under 6% p.a.

The Teachers Mutual Bank group, which includes Teachers Mutual, UniBank, Health Professionals Bank, and Firefighters Mutual Bank, cut rates across its Your Way home loan offering.

Both fixed and variable rates on the product were reduced, with some variable rates now as low as 5.99% p.a.

New variable rates from the group are as follows:

Borrower	LVR	Change	New rate (p.a.)	Comparison rate* (p.a.)
Owner-occupier IO	≤80%	-10bp	6.39%	6.18%
Owner-occupier IO	>80%	-35bp	6.79%	6.58%
Owner-occupier P&I	≤80%	-10bp	5.99%	6.01%
Owner-occupier P&I	>80%	-35bp	6.39%	6.41%
Investor IO	≤80%	-10bp	6.69%	6.48%
Investor IO	>80%	-35bp	7.09%	6.88%
Investor P&I	≤80%	-10bp	6.29%	6.31%
Investor P&I	>80%	-35bp	6.69%	6.71%

Summerland Bank revealed new special offer variable rates

Finally, mutual bank Summerland unveiled new special interest rates to new-to-bank borrowers signing on to its Basic home loan product this week.

Owner-occupiers

Owner-occupiers with a deposit or equity of at least 40% of their property's value could secure a variable rate of 5.94% p.a. – marking a 5 basis point cut (5.99% p.a. comparison rate*).

Those with deposits or equity of 20% or more can secure a 5.99% p.a. interest rate (6.04% p.a. comparison rate*) – 10 basis points lower.

Investors

Meanwhile, property investors with loan-to-value ratios (LVRs) of 60% or less could snap up a variable rate of 6.24% p.a. (6.29% p.a. comparison rate*) – a 5 basis point drop

Those with LVRs of 80% or less might be eligible for a 6.29% p.a. variable rate (6.34% p.a. comparison rate*) – down 5 basis points.

Other movers

• Bank First cut 20 basis points from many variable rate home loan products
• Westpac-owned BankSA and St George can select fixed rates by up to 5 basis points

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Important Information and Comparison Rate Warning

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