This article is from the Australian Property Journal archive
WITH the Reserve Bank expected to certainly cut interest rates next week, the National Australia Bank is vying for new customers by slashing its fixed rate and offering $2000 back, whilst non-major lenders up their game with Greater Bank dropping its rate below 3% – the first go below 3% line.
NAB yesterday reduced several of its 2-year fixed rates for owner-occupiers paying principal and interest by 0.20% to 3.49%. In addition, it is also offering $2,000 back on new loans of $250,000 or more.
RateCity.com.au research director Sally Tindall said it was unusual to see one of the big four banks offer one of the lowest fixed rates in Australia.
“The fact that NAB, a big four bank, is offering one of the lowest fixed rates in Australia is a sign of the times. The big banks are now playing in the low cost loan space in a bid for new customers and they aren’t taking a backwards step,” she added.
RateCity data shows around 50 lenders have cut fixed rates in the last two months ahead of the expected RBA cut. Some lenders are even moving variable rates in the week out from the RBA, including ING which moved rates today and Mortgage House, which now has the lowest ongoing variable rate in Australia of 3.29%.
“These low fixed rates could really appeal to some home owners, but as we edge closer to RBA-day, some people could wait and see how the variable rates play out,” she said.
Big four banks owner-occupier fixed rates
| Big four banks | Fixed 2-year | Fixed 3-year | Fixed 5-year |
| ANZ | 3.75% | 3.69% | 3.99% |
| CBA | 3.79% | 3.79% | 4.09% |
| NAB | 3.49%* | 3.79% | 4.09% |
| Westpac | 3.79% | 3.69%* | 4.09% |
Note: All interest rates in the tables above are for owner-occupiers paying principal and interest. *First home buyer special. Source: RateCity
Meanwhile mutual financial institution, Greater Bank, has gazumped the major lenders, offering to reduce its 1-year fixed home loan for owner-occupiers paying principal and interest by 0.50% to 2.99%, making it the first bank to go below 3% ahead of the RBA’s meeting on Tuesday.
Greater Bank has reduced its 2-year fixed rate to 3.39%, and both the 4- and 5-year fixed rates to 3.64%.
Bank of Queensland will also cut its 2-year year fixed rate to 3.44%, and 3-year fixed home loan rate to 3.39% for owner-occupiers.
New lowest home loan rates
1 year fixed
| Greater Bank | 2.99% |
| Tic Toc | 3.39% |
| Macquarie Bank | 3.59% |
2 year fixed
| Greater Bank | 3.39% |
| BoQ | 3.44% |
| NAB | 3.49% |
3 year fixed
| BoQ | 3.39% |
| Loans.com.au | 3.48% |
| Suncorp | 3.49% |
4 year fixed
| Greater Bank | 3.64% |
| Macquarie Bank | 3.79% |
| Teacher’s Mutual Bank | 3.99% |
5 year fixed
| Greater Bank | 3.64% |
| Macquarie Bank | 3.79% |
| UBank | 3.94% |
Variable
| Mortgage House (RBA special) | 3.29% |
| Reduce Home Loans | 3.44% |
| TicToc | 3.47% |
| loans.com.au | 3.48% |
Australian Property Journal
