Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

The major bank dropping its mortgage rates this month

NAB

One major bank has announced it will drop the interest rates on its mortgages this month, as investors are being told to expect out-of-cycle rate cuts and hikes.

Several lenders have repriced their mortgage packages this month, including Teachers Mutual Bank and Adelaide Bank, and major bank NAB is the latest to announce reductions.

Effective from Friday, 7 March for new loans, NAB will be repricing its Tailored Home Loan for both owner-occupied and investment fixed rate mortgages.

According to NAB, fixed rates offered on the major bank’s Tailored Home Loan for owner-occupiers now start from 3.79 per cent for principal and interest loans, and from 4.34 per cent for interest-only loans.

Advertisement
Advertisement

Fixed rates on NAB’s Tailored Home Loan for investors now start from 3.99 per cent for principal and interest loans, and from 4.18 per cent for interest-only loans.

This move comes as the Reserve Bank announced the official cash rate would stay on hold for a record 30th month.

Further, Australia’s leading economists are predicting a cash rate cut will be the central bank’s next move.

Given these market conditions, borrowers shouldn’t rely on the official cash rate as an absolute or reliable indicator of what the interest rate will be on their mortgage, as they may have reliably done in years gone past.

“Where borrowers are concerned, it is no longer reasonable to assume that changes in the cash rate, or lack thereof, will drive home loan interest rates,” said Susan Mitchell, chief executive officer at Mortgage Choice.

“At a standing committee on economics in February, RBA governor [Philip] Lowe highlighted the importance of borrowers seeking a better deal on their home loan, drawing attention to the discounts on headline interest rates that lenders are willing to give borrowers,” she said.

“Interest rates are constantly changing, and the rates you see advertised can be significantly higher than the rate you could secure.”

 

 

 

 

 

The major bank dropping its mortgage rates this month
NAB
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Mort - The greatest fraudulent deception the ALP and Chris Bowen is running about Franking Credits is that "those who do not pay tax should not receive a.......
Dr Terry Dwyer, Dwye... - Become an age pensioner... a curious incentive for welfare dependency. Loss of $1 in part pension could cost someone thousands in franking credits........
Anonymous - I think they have this poor man confused with the government......surely.......fraud...steal money from taxpayers..!!.... hat fits perfectly !!....
Christopher O'Neill - The word "reform" is a lie. At best there is no agreement that this is any improvement at all. At worst it is a regressive tax policy that regresses.......