NAB cuts rates to stay competitive with major rivals
Several Australian lenders adjusted their mortgage rates this week, with six cutting at least one fixed home loan rate and two reducing variable rates, according to financial comparison website RateCity.com.au.
National Australia Bank (NAB), the country’s third-largest lender, lowered its fixed rates by up to 0.65 percentage points on Tuesday. This brought NAB’s lowest three-year fixed rate for owner-occupiers with a 30% deposit down to 5.89%, aligning it with similar offerings from Commonwealth Bank (CBA) and Westpac. NAB’s three-year rate now stands competitive against its major rivals, leaving ANZ as the only major bank with a three-year fixed rate still above 6%.
Last Thursday, Macquarie Bank reduced a range of its fixed rates by up to 0.40 percentage points. The country’s fifth-largest lender now offers the lowest rates for two-, four-, and five-year fixed home loans.
HSBC also cut a range of fixed rates this week by 0.10 percentage points, bringing its two-year fixed rate down to 5.59%. The bank additionally lowered its variable rate for borrowers with a 40% deposit to below 6%.
The lowest advertised variable rate is currently 5.75%, offered by Abal Bank. Other lenders with competitive variable rates include Police Bank, Bank of Heritage Isle, and Border Bank, which advertise rates at 5.84%, followed by Pacific Mortgage Group, The Mutual Bank, and RACQ, all at 5.89%.
For fixed rates, SWS Bank leads with the lowest advertised three-year fixed rate at 4.99%. Among the other fixed-term options, Macquarie Bank offers a two-year fixed rate at 5.39%, while Geelong Bank has a one-year fixed rate starting from 5.50%. Macquarie Bank also offers a four- and five-year fixed rate at 5.39%.
As of this week, CBA’s lowest variable rate stands at 6.15%, while its fixed rates range from 5.89% for a three-year term to 6.69% for a five-year term. Westpac’s lowest variable rate is 6.44%, with its one-year fixed rate starting at 6.09% and three- to five-year terms all at 5.89%.
NAB offers a variable rate of 6.79%, with fixed rates beginning at 6.69% for one year and 5.99% for three years. ANZ, meanwhile, advertises a variable rate of 6.14% and fixed rates ranging from 6.54% for two years to 6.84% for five years.
“Our database shows the lowest fixed rate is 4.99% for three years from SWS Bank, while the lowest variable rate is 0.76 percentage points higher at 5.75% from Abal Bank,” said Laine Gordon (pictured above), money editor at RateCity.com.au. “That’s not a huge gap, but a few cash rate cuts could change the equation.”
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