NAB has started the week with a bold move on the home loan market, cutting interest rates on a range of its mortgage products.

The third-biggest home lender in Australia has slashed its Tailored Variable interest rates by 78 basis points on Monday morning for new owner occupier principal and interest (P&I) and interest only (IO) loans.

The cuts are across the board for loan-to-value ratios (LVR) from less than 60% up to 90%.

The new rates are as follows:

Product name Change (%) New rate Comparison rate*
Tailored Variable P&I ≤60% -0.78  6.79% p.a. 6.87% p.a.*
Tailored Variable P&I 60-70% -0.78 6.79% p.a. 6.87% p.a.*
Tailored Variable P&I 70-80% -0.78 6.99% p.a. 7.07% p.a.*
Tailored Variable P&I 80-90% -0.78 6.99% p.a. 7.07% p.a.*
Tailored Variable IO ≤60% -0.78 7.26% p.a. 7.07% p.a.*
Tailored Variable IO 60-70% -0.78 7.26% p.a. 7.07% p.a.*
Tailored Variable IO 70-80% -0.78 7.46% p.a. 7.27% p.a.*
Tailored Variable IO 80-90% -0.78 7.46% p.a. 7.27% p.a.*

NAB's Tailored Variable home loans come with no application fees, a monthly service fee of $8, and an offset account.

NAB’s no-frills home loan product, its Base Variable Home Loan (P&I) remains unchanged at 6.84% p.a. (6.88% p.a. comparison rate*) for new customers.

NAB joins downward move on variable rates

In recent weeks, smaller lenders have begun cutting variable home loan rates after the market saw widespread cuts to fixed term loans in previous months.

According to the latest ABS data, the overwhelming proportion of new home lending – 98.56% - by value in February 2024 were variable loans.

It indicates Australians are reluctant to lock into fixed term loans with interest rates widely expected to drop by the end of 2024.

Australia’s big four banks are tipping the first drop to the Reserve Bank of Australia cash rate in either September or November.

NAB investor home loans drop more than 1% 

NAB has also dropped Investment Tailored Variable loans for investors, cutting a hefty 1.08% off its P&I and IO loans for LVR  ≤60% up to 90%.

The new investor rates are as follows:

Product  Change (%) New rate Comparison rate*
Investment Tailored Variable IO ≤60% -1.08% 7.29% p.a.  7.26% p.a.*
Investment Tailored Variable IO 60-70% -1.08% 7.29% p.a.  7.26% p.a.*
Investment Tailored Variable IO 70-80% -1.08% 7.49% p.a. 7.46% p.a.*
Investment Tailored Variable IO 80-90% -1.08% 7.49% p.a.  7.46% p.a.*
Investment Tailored Variable P&I ≤60% -1.08% 7.09% p.a. 7.17% p.a.*
Investment Tailored Variable P&I 60-70% -1.08% 7.09% p.a. 7.17% p.a.*
Investment Tailored Variable P&I 70-80% -1.08% 7.29% p.a. 7.37% p.a.*
Investment Tailored Variable P&I 80-90% -1.08% 7.29% p.a. 7.37% p.a.*

Other recent movers

Last week, Goulburn Murray Credit Union made a statement in the mortgage market, dropping its Standard Variable Plus new home loan rates by 2.05% to 6.19% p.a. (6.35% comparison rate*) for owner occupiers and 6.39% p.a. (7.94% p.a. comparison rate*) for investors.

By comparison, other smaller lenders have shown less largesse, making more modest cuts to their variable rates in recent weeks.

CommBank's digital-only lender Unloan also debuted its new home loan offering at a competitive 5.99% p.a. (5.90% comparison rate*) for owner occupier loans and 6.29% p.a. (6.20% p.a. comparison rate*) for investors.

It remains to be seen if other major home lenders feel compelled to make their own statements on the market.

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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 Nimi Diffa on Unsplash



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