Big four bank NAB has announced fixed mortgage rate cuts for both new and existing customers across its Tailored Home Loan (Choice Package). This applies to both investors and those with owner-occupied loans.

The rate changes take place from Thursday, 18 April, and they include the following:

• Owner-occupied principal and interest fixed rates have been cut by up to 10bps, with rates now starting from 3.79 per cent
• Owner-occupied interest-only fixed rates have been cut by up to 10bps, with rates now starting from 4.29 per cent
• Investment principal and interest fixed rates have been cut by up to 20bps, with rates now starting from 3.89 per cent
• Investment interest-only fixed rates have been cut by up to 36bps, with rates now starting from 4.09 per cent

NAB’s move follows cuts from Westpac and in the last fortnight.

The rate cuts are also indicative of a broader market pattern – the banks are adjusting their rates outside of the Reserve Bank’s cash rate calls.

As such, borrowers shouldn’t be relying on the RBA’s official cash rate as an absolute indicator of the pricing on their home loans.