Another major has implemented sweeping cuts across its fixed rates, becoming the latest of the big four to currently have a sub 3% rate on offer.
“NAB joins ANZ and Commonwealth Bank with a rate below 3%, demonstrating the appetite of the big banks for quality new business,” said Canstar finance expert Steve Mickenbecker.
“Fixed rates are an attractive vehicle for the banks to grow their market as the lower rate isn’t passed on to existing customers. It means the banks can offer a competitive rate without hurting their overall margin too much.”
At NAB, owner occupied P&I rates have been cut by 0.21% to 0.40%, with 2-year and 3-year fixed rates now the lowest at 3.08%.
Packaged owner occupied P&I have also been cut by 0.21% to 0.40%, bringing the 2- and 3-year fixed rates below 3% to 2.98%.
Investment P&I repayments have been cut by 0.20% to 0.31%, with 1-, 4- and 5-year fixed rates now resting at 3.69%.
The package investment P&I are even lower, with the 2- and 3-year rates at 3.28%.
Following the 25bps RBA rate cut last week, NAB passed through just 15bps to its customers.
“Variable rates may fall further yet, but this doesn’t guarantee that fixed rates will also fall as they are only tenuously tied to the Reserve Bank cash rate. Meanwhile, borrowers can set their repayments at a favourable rate,” said Mickenbecker.
“Timing of the fix is also sensitive to the interest rate cycle, as borrowers could find themselves locked when rates start to move up and miss the next opportunity to fix.”