More majors slash fixed rates

by Julia Corderoy24 Jul 2014
Two more major banks have followed on the heels of yesterday's fixed rate cuts.

Commonwealth Bank announced yesterday it would cut its 5-year fixed rate to 4.99%. Following the move, both NAB and Westpac have also announced fixed rate cuts.

NAB has lowered the interest rates for its Choice package on its three-year term to 4.94%, its four-year term to 4.99% and its five-year term to 4.99%. The bank said it now had five rates under 5% - with its one-year rate staying at 4.79% and its two-year rate staying at 4.84%.

“NAB is committed to driving competition in the banking industry and providing our customers with the best products and great service, because what’s good for our customers is good for our business. It’s good to see some of our competitors try and catch up,” NAB group executive for personal banking Gavin Slater said.

Slater said that the decision was in response to the increased demand for fixed-rate home loans in the past 12 months.

“We know many home owners are looking for certainty, whether they are investors or first home buyers, and NAB is offering that through these market-leading fixed home loan rates,” he said. 

Westpac also cut its five-year fixed rate to 4.99%, and 80bp cut the bank said brought its five-year rate to the lowest on record.

"Many customers are looking for certainty with their home loan repayments and we are
committed to delivering customers that peace of mind through this significant interest rate
reduction. It also allows customers to plan for the future as they look to own their home sooner with the help of a mortgage broker, and this is one way that we can help them do that," Westpac general manager of broker distribution Tony MacRae said.