Home News NAB cuts home loan rates as economics team makes case for RBA 50bps cut in May

NAB cuts home loan rates as economics team makes case for RBA 50bps cut in May

National Australia Bank has taken the knife to its tailored fixed home loan rates, cutting some by 55 basis points, while Suncorp has gone higher.

By Denise Raward

First published on 11 Apr 2025

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NAB cuts home loan rates as economics team makes case for RBA 50bps cut in May

NAB has gone big on its fixed rate home loan cuts with its lowest advertised fixed rate now 5.39% p.a. (6.30% p.a. comparison rate*) for three years for loan-to-value ratios (LVRs) 70% or less.

The cuts should come as no surprise in a week where NAB economists boldly forecast the next Reserve Bank of Australia rate movement in May would see the cash rate slashed by 50 basis points to 3.60%.

But that was just the start - NAB also expects there will be consecutive follow-up cuts of 25 basis points in July, August, November, and February, when the cash rate will land at 2.60% p.a.

It's important to note these forecasts were delivered right before President Trump announced a 90-day moratorium on some tariffs, but not China's; consequently the US' S&P 500 skyrocketed, posting some of its strongest rebounds since the 2007-09 recession.

It's heady stuff in a week where financial markets were plunged into turmoil by US president Trump's on again-off again trade tariffs.

See all this week's home loan rate movements: Home Loan market malaise sets in, NAB cuts, Suncorp increases

At last check, the US tariffs are being delayed by 90 days on all except China which has been hit with a 145% tariff rate - but, of course, all this may be subject to sudden change.

Here's a look at NAB's new Tailored fixed home loan rates for owner occupiers and investors with 80% LVR making principal and interest (P&I) repayments:

Product	% change	New rate	Comparison rate*
OO 1 year P&I 80% LVR	-0.55	5.54% p.a.	6.70% p.a.*
OO 2 years P&I 80% LVR	-0.45	5.44% p.a.	6.57% p.a.*
OO 3 years P&I 80% LVR	-0.45	5.39% p.a.	6.44% p.a.*
OO 4 years P&I 80% LVR	-0.40	5.79% p.a.	6.48% p.a.*
OO 5 years P&I 80% LVR	-0.45	5.79% p.a.	6.41% p.a.*
Investor 1 year P&I 80% LVR	-0.50	5.69% p.a.	6.98% p.a.*
Investor 2 years P&I 80% LVR	-0.40	5.59% p.a.	6.83% p.a.*
Investor 3 years P&I 80% LVR	-0.40	5.59% p.a.	6.71% p.a.*
Investor 4 years P&I 80% LVR	-0.40	5.99% p.a.	6.74% p.a.*
Investor 5 years P&I 80% LVR	-0.45	5.99% p.a.	6.66% p.a.*

It was a busy week for NAB rate fixers who also joined the other big banks and a swag of smaller banks in slashing their term deposit interest rates this week.

Suncorp goes the other way

In a curious move, the rate fixers at ANZ-owned Suncorp have gone the other way, adjusting their Back to Basics and Home Package Plus special offer variable rates two basis points higher.

The best new rate is 5.90% p.a. (5.91% p.a. comparison rate*) for a Back to Basics Better Together loan, but that's with an LVR of 60% or less for those making P&I repayments.

Here's a snapshot of the new Suncorp 'special offer' rates for 80% LVR borrowers making P&I repayments:

Product	% change	New rate	Comparison rate*
Back to Basics Better Together 80% LVR P&I	+0.02	5.91% p.a.	5.92% p.a.*
Investor Back to Basics Better Together 80% LVR P&I	+0.02	6.11% p.a.	6.12% p.a.*
Home Package Plus 80% LVR P&I	+0.02	6.02% p.a.	6.37% p.a.*
Investor Home Package Plus 80% LVR P&I	+0.02	6.21% p.a.	6.56% p.a.*

Rates drop for lower LVRs and increase substantially for LVRs between 80.01 and 90%.

Suncorp's current special offer on its Package Plus home loan is a waiver of its annual fee which the bank says will save $11,250 over a 30 year loan term.

The fine print reveals the annual fee of $375 will be charged and reimbursed while the package is active, with the special offer deal subject to change at any time.

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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.

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Row Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.79% p.a.	5.83% p.a.	$2,931	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.74% p.a.	5.65% p.a.	$2,915	Principal & Interest	Variable	$0	$0	80%	100% owned by Commbank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	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.	More details	Compare	Promoted	Disclosure
Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.84% p.a.	6.08% p.a.	$2,947	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	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

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Denise Raward

Denise Raward is a senior journalist with an interest in macroeconomics, property, and personal finances. She has worked extensively across mainstream media organisations and lectured at Queensland University of Technology, Griffith University, and Bond University. She holds a Bachelor of Business - Communication, a Master of Arts, and RG 146 financial certification in Generic Knowledge, Securities, and Regulation. Joining Savings.com.au in January 2024, Denise strives to deliver financial information in everyday language to help Australians to better understand how to manage their own – and their families' – ongoing financial health.

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We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.

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For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*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.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

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.

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NAB cuts home loan rates as economics team makes case for RBA 50bps cut in May

Suncorp goes the other way

Ready, Set, Buy!

Denise Raward