NAB Joins Australia’s Major Banks In Cutting Fixed Mortgage Rates

National Australia Bank (NAB) is the latest of the country’s major lenders to lower its fixed mortgage rates as banks seek to expand their loan books and borrowers move to lock in hot deals.

As of 14 February, NAB clients will benefit from a one-year package interest rate of 5.09%, down by 15 basis points (bps), while the fixed rate on the bank’s two-year mortgage product will be cut by 35 bps to 4.99%. The new fixed rates are the lowest NAB has made available in more than three years. NAB, which controls a 16.4% slice of the home loan market as at end-2012 and boasts the lowest variable rate of the major lenders at 6.38%, now also leads its big peers on one-year fixed offers.

Westpac last week lowered its packaged two-year fixed rate home loan by 40 bps to 4.99%, the lowest level since April 2009.

Commonwealth Bank of Australia, which has just announced a record half-year cash profit of $3.78 billion, slashed the fixed rate on its advantage package with a two-year term to 4.99%. Australia and New Zealand Banking Group is also amongst banks that have cut their fixed-rate offers, reported the Australian Broker.