The cut translates to a monthly saving of $186 on a $500k loan, or $2,229 annually.
NAB now offers the leading three-year fixed rate among the big four banks.
Buyers with a 20% deposit can secure a three-year fixed rate at 6.04% p.a. (6.80% p.a. comparison rate), and those with deposits over 30% can get a rate starting at 5.99% p.a. (6.80% p.a. comparison rate).
“NAB’s decision to slash their three-year fixed rate by 60 basis points suggests they anticipate a significant drop in the cash rate over the next few years,” said Rachel Wastell (pictured above), Mozo finance expert.
“This aggressive rate cut by NAB could be a response to ANZ’s acquisition of Suncorp and is a clear bid to lure customers by betting on future cash rate reductions.”
“For borrowers seeking the security of a big four bank and want the predictability and stability of a fixed rate home loan, NAB’s rate cut could be a game-changer,” Wastell said.
However, she said, “Borrowers considering longer-term fixed rates should be cautious. When the cash rate eventually drops, those on fixed rates might end up paying more than those on variable rates.”
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