Powered by MOMENTUM MEDIA
subscribe to our newsletter

Major bank drops mortgage rates

A big four bank has announced cuts to its variable home loan rates across both its owner-occupied and investment products, with its basic variable rate dropping to its “lowest level on record”.

NAB has reduced its basic variable rates for owner-occupiers and investors with principal and interest (P&I) repayment terms.

For owner-occupiers:

  • Loans with an LVR of 80 per cent or less have been reduced by 11 bps and now start from 3.09 per cent
  • Loans with an LVR of more than 80 per cent have been reduced by 11 bps and now start from 3.29 per cent

Meanwhile, for investors:

  • Loans with an LVR of 80 per cent or less have been reduced by 11 bps and now start from 3.39 per cent
  • Loans with an LVR of more than 80 per cent have been reduced by 11 bps and now start from 3.59 per cent

In a statement following the announcement, a spokesperson noted that the changes take the bank’s basic variable rate to its “lowest level on record”.

Advertisement
Advertisement

“We are excited to further strengthen our competitive home loan offering, with these changes showing our ongoing commitment to support customers’ home ownership goals,” a NAB spokesperson said.

The bank added the changes would particularly assist first home buyers applying for the federal government’s First Home Loan Deposit Scheme, with NAB appointed as the first credit provider on the scheme’s panel last month.

Commenting on NAB’s changes, comparison service Canstar’s finance analyst, Steve Mickenbecker, said they were proof of strong competition in the marketplace.

 “The latest cuts made by NAB are further evidence of the competitiveness of the home loan market at the moment. We’re seeing all-time low rates, and this cut puts NAB’s base variable rate for owner-occupiers in the lowest price quarter of loans on Canstar’s database,” he said.

“It’s not just the small players who are being competitive – it’s the big four as well.”

PROMOTED CONTENT


[Related: Lender hikes rates to ‘improve processing times’] 

 

Major bank drops mortgage rates
Arrow down
mortgagebusiness

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The value of new home loans pivoted upwards after three months of freefall, according to the latest ABS data. ...

Heightened migration into Queensland has resulted in shrinking housing affordability, according to a state government department. ...

A real estate network's general manager has forecast South Australia house prices will grow by 15 per cent in 2022, as open borders raise de...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.