NAB cut its base variable home loan rates on Thursday, bringing them in line with two of its big bank peers Commonwealth Bank and Westpac.

Its base variable rate for new owner-occupiers making principal and interest (P&I) repayments is now 6.44% p.a. (6.48% p.a. comparison rate*), a 40-basis point drop.

NAB's interest only (IO) rates for both owner-occupiers and investors have been dropped by 60 basis points.

Here are NAB’s new rates:

Product Change (% p.a.) New rate Comparison rate*
Base variable (P&I) -0.40 6.44% p.a. 6.48% p.a.
Base variable (IO) -0.60 7.34% p.a. 6.87% p.a.
Investor base variable (P&I) -0.40 6.96% p.a. 7.00% p.a.
Investor base variable (IO) -0.60 7.67% p.a. 7.32% p.a.

NAB’s basic variable home loans come with no application or monthly fees and the above rates are available to owner-occupiers with loan-to-value ratios (LVR) up to 95%.

Investors need LVRs of 90% or less to secure the new rates.

NAB joins big two in base variable rate offerings

NAB’s new rates see it in line with similar basic product rates at Commonwealth Bank and Westpac.

CommBank’s Standard Variable rate of 6.34% p.a. (6.72% p.a. comparison rate) comes as part of its Wealth Package, which demands an annual fee of $395.

Westpac’s Featured Basic Variable rate is 6.44% p.a. (6.76% p.a. comparison rate), including a two-year 1.64% p.a. discount and an additional 0.10% discount for borrowers with LVRs up to 70%.

ANZ remains the outlier, with its Standard Variable rate considerably higher at 7.24% p.a. (7.24% p.a. comparison rate) for those with LVRs of 80% or less.

Teachers Mutual affiliates cut basic variable and fixed rates

The Teachers Mutual group includes Teachers Mutual Bank, Unibank, Firefighters Mutual Bank, and Health Professionals Bank, all of which have cut up to 35 basis points off a range of their mortgage products.

The group has taken 10 basis points off its Your Way basic home loan rate, taking it under the 6% benchmark to 5.99% p.a. (6.01% p.a. comparison rate) for owner-occupiers, paying P&I with LVRs up to 80%.

Here are the new Your Way variable interest rates for owner-occupiers:

Product Change (% p.a.) New rate Comparison rate*
Your Way Basic Home Loan ≤80% (P&I) -0.10 5.99% p.a. 6.01% p.a.
Your Way Basic Home Loan >80% (P&I) -0.35 6.39% p.a. 6.41% p.a.
Your Way Basic Home Loan ≤80% (IO) -0.10 6.39% p.a. 6.18% p.a.
Your Way Basic Home Loan >80% (IO) -0.35 6.79% p.a. 6.58% p.a.

Investor home loan rates are 30 basis points higher.

The affiliated banks have also slashed their fixed rates for both owner occupiers and investors.

The cuts take all new fixed rates for owner occupiers making P&I repayments under the 6% mark for lock-in periods of between one to five years. 

See also: Best Fixed Rate Home Loans

Your Way loans offer a split loan option, free redraws, and unlimited additional repayments on the variable portion of home loans and are available to first home buyers.

Bank First adjusts variable rates by up to 20 bp

The Victorian-based mutual bank has been busy adjusting a range of its mortgage rates, also putting forward cuts to some of its basic home loan variable rates.

Bank First's new best owner-occupier basic rate is now under the 6% benchmark at 5.99% p.a. (6.02% p.a. comparison rate*) for borrowers with ≤60% LVRs making P&I repayments – a five basis point drop.

Here are the new basic home loan rates for owner occupiers paying P&I:

Product Change (% p.a.) New rate Comparison rate*
Basic Home Loan ≤60% LVR -0.05 5.99% p.a. 6.02% p.a.
Basic Home Loan 60-70% LVR -0.15 6.04% p.a. 6.07% p.a.
Basic Home Loan 70-80% LVR -0.5 6.14% p.a. 6.17% p.a.
Basic Home Loan 80-90% LVR +0.1 6.59% p.a. 6.62% p.a.

Bank First has also adjusted the rates for its basic investor home loans, for both P&I and IO payments.

There are also new rates for Bank First's Complete home loans, which come with an offset account, as well as its Premier Package loans, which offer multiple offsets and a split loan option. 

The Complete home loan has a new rate of 6.24% p.a. (6.27% p.a. comparison rate*) – a drop of five basis points – for owner-occupiers with a 70-80% LVR making P&I repayments. 

It's also offering a rate of 6.24% p.a. (6.61% p.a. comparison rate*) for the same borrowers taking up its Premier Package home loan – also a five-basis point drop.

Finally, Bank First varied rates on a range of its construction loans, dropping rates for LVRs under 80% but upping rates for LVRs between 80-90%.

Summerland cuts basic rates by up to 10 bp

Summerland, based in northern coastal New South Wales, has lowered its Basic Home Loan rates as part of a special offer deal.

Owner-occupiers with ≤60% LVR can secure a special offer variable rate of 5.94% p.a. (5.99% comparison rate) – marking a five basis points cut.

That rate increases to 5.99% p.a. (6.04% p.a. comparison rate) for borrowers with LVRs between 60% and 80% – a 10 basis points drop.

Investor Basic loans also saw a cut this week, with those for borrowers with LVRs below 80% now sitting 30 basis points higher than the bank's new owner-occupier rates.

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Harper van Mourik via Unsplash



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