NAB makes significant fixed rate cut; HSBC hikes new customer variable rates
There were a number of notable changes in mortgage rates this week, according to financial comparison website RateCity, with the most significant being from NAB which cut its three-year owner-occupier fixed rate by 0.60 percentage points.
The move positions NAB as the only major bank offering a rate starting with a “5”, in a bid to attract customers seeking stability amid fluctuating cash rates.
The latest RateCity interest rates weekly wrap-up also showed rate cuts from QBank, with its Classic Special First Home Buyer owner-occupied variable rate with a loan-to-value ratio (LVR) of less than 95% decreased by 0.35 percentage points to 6.29%. The Capricornian’s investor fixed one-year rate principal and interest with LVR of less than 80% also decreased by 0.65 percentage points to 5.74%.
Increases were seen in HSBC’s packaged owner-occupied fixed one-year rate principal and interest with LVR of less than 60%, which increased by 0.20 percentage points to 6.19%. Australian Mutual Bank's owner-occupied fixed three-year rate principal and interest increased by 0.26 percentage points to 5.74%, while Queensland Country Bank’s special owner-occupied fixed one-year rate principal and interest with LVR of less than 80% increased by 0.15 percentage points to 5.89%.
The lowest advertised fixed rates this week are: one-year at 5.74% by The Capricornian; two-year at 5.64% by Australian Mutual Bank (First Home Buyer special); three-year at 5.59% by Community First Bank; four-year at 5.80% by Up Bank; and five-year at 5.59% by RACQ.
The top advertised variable rates include: Abal Bank at 5.75%; G&C Mutual Bank at 5.80%; Police Bank, Bank of Heritage Isle, Border Bank (First Home Buyer special) at 5.84%; Pacific Mortgage Group at 5.89%; and The Mutual Bank at 5.89%.
Among the big four banks, the lowest advertised variable rates are: Commonwealth Bank at 6.15%; Westpac at 6.44% for two years, then 6.84%; NAB at 6.79%; and ANZ at 6.14% (refinance only). For fixed rates, the lowest advertised rates from the big four banks are: one-year at 6.59% across all four banks; two-year at 6.49% for Westpac; three-year at 5.99% for NAB; four-year at 6.59% across all four banks; and five-year at 6.69% across all four banks, except NAB at 6.79% and ANZ at 6.84%.
“While any rate under 6% will turn at least a few heads, we’re unlikely to see a flurry of borrowers switching back to fixed rates, particularly those that run for multiple years,” said Sally Tindall (pictured above), research director at RateCity. “While no one knows for certain which direction the RBA will next move the cash rate, the central bank has said the current settings are restrictive, which means RBA cuts at some stage over the next couple of years are likely.
“Among variable rates, the most notable change this week was HSBC’s increase to its new customer variable rates. New customer owner-occupiers who own over half of their home can potentially still get an advertised rate under 6%, however, every other advertised variable rate from the international bank is now over 6%.
“The RateCity.com.au database shows there are still over 30 lenders offering at least one variable rate under 6%, including from Heritage Bank, People’s Choice, CBA’s Unloan, and Bendigo’s Up Bank.”
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