Unlike its previous move in July, when a uniform 60 basis point reduction was applied only to home loans fixed for three years, NAB has made a flurry of cuts across its whole range of fixed mortgages.

A further 10 basis points have been docked from NAB's three-year fixed Tailored home loan with loan-to-value ratio (LVR) of 70% under, bringing its rate to 5.89% p.a. (6.62% p.a. *comparison rate).

This is currently the lowest fixed rate available from the bank, beating CommBank's offer of 5.89% p.a. (7.80% p.a. *comparison rate) for its three-year fixed home loan, which is available if bundled with Wealth Package, and Westpac's two-year fixed rate of 5.89% p.a. (7.45% p.a. *comparison rate).

Both CommBank and Westpac's rates come with an annual package fee of $395, and while NAB's fixed home loans don't carry annual charges, an $8 monthly service fee applies.

Here are some of NAB's newly adjusted rates for owner occupier home loans with 70-80% LVR paying principal and interest (P&I).

And here are P&I home loans for investors with 70-80% LVR.

Recently, NAB has been quicker on the draw compared to its other Big Four peers in adjusting the rates on home loan products.

Australia's third-largest lender previously slashed its fixed rate home loans in July, just as the policy-sensitive three-year bond yield began to plunge.

Falling bond yields and swap rates have enabled banks to access cheaper funding costs on global wholesale markets.

Fixed rate mortgages have been on a downward slide since, as banks pass on the savings to borrowers willing to fix their mortgages; to compensate, deposit rates have also been on the slide.

Westpac and CommBank previously dropped their fixed rates in August, with the latter adjusting some of its variable products as well.

ANZ is yet to lift a finger, as it hasn't moved front-book home loan rates since December 2023. Though it recently made adjustments in the term deposit space.

NAB, along with ANZ and Westpac, expects the RBA to start cutting rates in February 2025, while CommBank's economists remain fully priced for a cut happening before the year is out.

Read more: Product News NAB Home loan rate changes

Bernadette Lunas

Finance Journalist

Bernadette is a journalist with years of experience covering topics in macroeconomics, real estate, and lifestyle beats for notable print media organisations. She joined the InfoChoice Group in 2024, bringing her passion for writing stories that help Australians make better decisions about money.

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