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NAB cuts fixed rates, again

NAB cuts fixed rates, again

Australia’s third largest bank has cut its lowest 2-year fixed rate to 1.89 per cent today – a cut of 0.15 per cent.

This is the second time NAB has cut fixed rates in a month. Last month, the bank dropped its 2-year fixed rate by 0.05 per cent.

Today’s fixed rate cuts from NAB

Fixed ratesYesterdayTodayDifference
2 year owner-occupied (lowest)2.04%1.89%-0.15%
2 year investor (lowest)2.44%2.29%-0.15%

Note: above rates are with an LVR ratio of 80 per cent or less on a package loan.

Today’s cuts from NAB follow similar moves from Westpac last week and ANZ last month. Homestar Finance also cut to the new lowest 2-year fixed rate yesterday. 

RateCity.com.au research director, Sally Tindall, said: “Now all eyes are now on CBA and ANZ to see if they will jump on the bandwagon and bring their rates below 2 per cent.”

“Right now, people looking for a 2-year fixed rate with a big four bank are going to find the rates from Westpac and NAB more attractive,” she said. 

RateCity.com.au analysis shows the average owner-occupier taking out a big four bank 2-year fixed rate today, would pay $382 less per month during the fixed term than someone taking out the same loan 2 years ago.

“It’s no wonder people are willing to bid more at auction now than they were 2 years ago, when the cost of taking on debt is today so much lower,” she said.

2 year fixed rates: 2019 vs 2021

Big4 bank 
2 yr fixed rate
Monthly repayments ($400K loan)
Mar-19

3.76%

$1,855

Mar-21

1.97%

$1,472

Difference

1.79%

$382

Note: based on the average of the big four bank's lowest 2-year fixed rates for owner occupiers paying principal and interest on a $400K, 30 year loan.

Big four banks – lowest owner-occupier rates 

CBAWestpacNAB ANZ
1 year fixed

2.19%

1.99%

2.09% 

2.04%

2 year fixed

2.14%

1.79%

1.89%

2.04%

3 year fixed

2.14%

1.88%

1.98%

2.04%

4 year fixed

1.99%

1.89%

1.98%

2.24%

5 year fixed

2.99%

2.19%

2.24%

2.24%

Lowest variable rate

2.69%

2.19% for 2 yrs then 2.69%

2.69%

2.72%

Source: RateCity.com.au

Note: Westpac's rates are for a loan to value ratio of 70%.

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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