Major announces cuts to fixed home loan rates

by Duffie Osental23 Feb 2021

NAB has made cuts to several fixed home loan rates, with some owner occupier loans dropping below 2%.

The banking giant made the biggest cut to its 5-year fixed rate “Choice Package” loan for owner occupiers paying principal and interest (P&I), slashing 55 basis points to bring the rate down to 2.24% from 3.66%.

Meanwhile, the 3-year fixed owner occupier rate was reduced by 11 basis points to 1.98%.

As for investors, NAB’s lowest rate is 2.44% for both 2- and 3-year fixed rate loan (P&I on the Choice Package).

Andy Kerr, executive, home ownership at NAB, said rates remain at historic lows that NAB was “excited to offer even lower rates to our customers across most of our fixed rate terms from today.”

“Both our three- and four-year fixed rates for owner occupiers paying principal and interest are now below 2%, a level that would have seemed unbelievable just a few years ago,” said Kerr. “These changes will also offer our lowest ever rate to property investors.”

Additionally, Kerr said that home lending applications in January were the strongest the bank has seen in five years.

“We’re seeing very strong demand in the housing market with activity post-Christmas picking up much more quickly than usual,” said Kerr. “This has come despite the ongoing challenges presented through the pandemic. For the past few months home lending applications have been at their highest level in several years as buyers flock back into the market after a quiet period through the nationwide lockdowns. We expect the current trends to continue in the near-term given the historic low rates and government support programs.”