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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 rates | Yesterday | Today | Difference |
| 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
| CBA | Westpac | NAB | 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%.
Disclaimer
This article is over two years old, last updated on March 18, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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