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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:

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  • 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”.

“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.”

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

 

Major bank drops mortgage rates
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Charbel Kadib

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

Before joining the team in 2017, Charbel held roles 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.

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