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Big 4 bank drops rates

  • December 09 2019
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Borrow

Big 4 bank drops rates

By Cameron Micallef
December 09 2019

One of Australia’s big four banks has announced cuts to its variable home loan rates, taking the bank’s basic variable rate to its “lowest level on record”.

Big 4 bank drops rates

Big 4 bank drops rates

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  • December 09 2019
  • Share

One of Australia’s big four banks has announced cuts to its variable home loan rates, taking the bank’s basic variable rate to its “lowest level on record”.

Big 4 bank drops rates

The National Australia Bank has announced that it dropped the variable rate across owner-occupied and investment mortgages.

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.

Financial expert for Canstar Steve Mickenbecker believes the larger banks are starting to feel the pinch, leading to new customers winning from lower rates.

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

The bank announced that it will give up front cash payments of $2,000 for new customers and $4,000 for refinances to NAB as a way to attract new business.

“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,” Mr Mickenbecker explained.

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

Nestegg reader's also consider on New ANZ rate on home equity loan.

Big 4 bank drops rates
Big 4 bank drops rates
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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