Major Lender slashes 55 basis points off home loan rates

Major Lender slashes 55 basis points off home loan rates

One of the country’s major lenders has today announced major cuts to its home loan rates as competition continues to heat up in the market.

National Australia Bank has slashed a number of fixed home loan rates, as the COVID-19 economic fallout continues.

The major banking group has cut up 55 basis points off a number of fixed mortgages, with some of their owner-occupier loans dropping below 2 per cent.

NAB’s three-year and four-year fixed rates have dropped to 1.98%, while its five-year fixed owner-occupier loan shed 55 basis points to 2.24 per cent.

The rate cut puts NAB back in line with some of the other majors.

RBA official cash rate At an all-time low

The current low-interest environment comes after the Reserve Bank set the official cash rate at 0.1% in response to the coronavirus pandemic.

The RBA has also enacted quantitative easing and a term funding facility to flood the money market with liquidity and keep the cost of new debt down.

Full list of the NAB Rate reductions

Advertised Fixed Rates for NAB Choice Package – Owner Occupiers – Principal & Interest

Fixed term2Old rate Comparison rate1 Change New rate Comparison rate1 
1 year2.19% p.a. 4.17% p.a.-0.10%2.09% p.a.4.16% p.a.
2 year2.09% p.a. 4.00% p.a.-0.05%2.04% p.a.3.99% p.a.
3 year2.09% p.a.3.86% p.a.-0.11%1.98% p.a.3.83% p.a.
4 year1.98% p.a.3.69% p.a.0.00%1.98% p.a.3.69% p.a.
5 year2.79% p.a.3.87% p.a.-0.55%2.24% p.a.3.66% p.a.

Advertised Fixed Rates for NAB Choice Package – Owner Occupiers – Interest Only in Arrears

Fixed term2Old rate Comparison rate1 Change New rate Comparison rate1 
1 year3.89% p.a. 4.46% p.a.-0.30%3.59% p.a.4.43% p.a.
2 year3.68% p.a. 4.37% p.a.-0.09%3.59% p.a.4.36% p.a.
3 year3.68% p.a.4.31% p.a.-0.09%3.59% p.a.4.29% p.a.
4 year3.89% p.a.4.31% p.a.0.00%3.89% p.a.4.31% p.a.
5 year3.89% p.a.4.27% p.a.0.00%3.89% p.a.4.27% p.a.

Advertised Fixed Rates for NAB Choice Package – Residential Investment – Principal & Interest 

Fixed term2Old rate Comparison rate1 Change New rate Comparison rate1 
1 year2.59% p.a. 4.73% p.a.-0.05%2.54% p.a.4.73% p.a.
2 year2.49% p.a. 4.55% p.a.-0.05%2.44% p.a.4.54% p.a.
3 year2.59% p.a.4.41% p.a.-0.15%2.44% p.a.4.37% p.a.
4 year3.09% p.a.4.43% p.a.-0.15%2.94% p.a.4.38% p.a.
5 year3.09% p.a.4.33% p.a.-0.15%2.94% p.a.4.28% p.a.

Advertised Fixed Rates for NAB Choice Package – Residential Investment – Interest Only in Arrears

Fixed term2Old rate Comparison rate1 Change New rate Comparison rate1 
1 year2.79% p.a.4.82% p.a.-0.10%2.69% p.a.4.81% p.a.
2 year2.69% p.a.4.63% p.a.-0.10%2.59% p.a.4.62% p.a.
3 year2.69% p.a.4.47% p.a.-0.10%2.59% p.a.4.45% p.a.
4 year3.19% p.a.4.47% p.a.-0.10%3.09% p.a.4.44% p.a.
5 year3.19% p.a.4.36% p.a.-0.10%3.09% p.a.4.32% p.a.

Useful Tips

While it is great to see the change in rates this news comes from just one of the Major lenders. There are many lenders out there and it is worth engaging a Mortgage broker to help you find and apply for the best rates to suit your individual situation.

From the 1st of January 2021 it is not law that a Mortgage Broker must work in your best interests when trying to find you finance. A lot of brokers, including me, don’t charge you anything but instead obtain a commission from the lender who gives you the loan. Banks are not required to act in your best interests as they are just the lender.

It is worth engaging with your broker every 6-12 months just to double check that you are still getting value for money as it might be worth switching loans. On average people tend to stay with their lender for 3-5 years before even thinking of switching.


Get the ball rolling! All I need to check your rate – If you let me know your current rate, balance and what your repayment amount is I can quite quickly determine if theres a better solution out there for you.

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