ANZ and NAB cut their fixed rate home loans - time to ‘nab’ yourself a fixed rate discount?
And just like that, within the span of a week, all of the Big 4 banks have moved their fixed rate home loans.
This morning, ANZ and NAB cut some of their fixed rates by as much as 50 basis points, making their owner occupier, principal and interest 5 year packaged rate one of the most competitive rates on the market at 3.59%.
According to the Mozo database, the only providers that beat this rate are Greater Bank, Suncorp and Newcastle Permanent.
Fixed rate changes, Principal & Interest loans - March 2018
| 1 year | 2 years | 3 years | 4 years | 5 years | |
|---|---|---|---|---|---|
| ANZ | |||||
| Owner P&I | 4.24% | 4.14% | 4.14% (-0.10) | 4.64% | 4.74% |
| Investor P&I | 4.44% (-0.20) | 4.34% (-0.20) | 4.44% (-0.20) | 4.94% (-0.10) | 4.94% (-0.20) |
| NAB | |||||
| Owner P&I | 3.99% | 3.98% | 4.04% | 4.69% | 4.19% (-0.50) |
| Investor P&I | 4.39% | 4.19% (-0.30) | 4.19% (-0.35) | 4.89% | 4.89% |
It seems that ANZ and NAB had similar intentions with their rates, as both banks have made the same cuts for both their standard and packaged rates across all their loan terms, with the exception of NAB’s 4 year rates.
Just last Friday, CommBank dropped fixed rates for both owner occupiers and investors, while Westpac bucked the trend on Wednesday and hiked their fixed rates.
RELATED: CommBank drops fixed rate home loans with investors snagging the biggest discount
“The competition between the Big 4 banks is really starting to heat up. We’ve now seen three out of the Big 4 offering more competitive rates for borrowers looking for a shorter fixed rate term,” said Mozo Data Manager, Peter Marshall.
However, all good things must come to an end and according to Marshall, low big bank fixed rates are no exception. With experts predicting that the 10-year US Treasury bond could hit 3% and potentially impact fixed interest rates in Australia, there’s a good chance fixed rates will rise as well.
“There’s a lot of uncertainty in the global economy right now and it’s likely that it could bring these fixed rate deals to a close,” Marshall said.
“If you are looking for a little more certainty in your loan, there are plenty of sharp rates to consider right now so it could be a great time to fix all or part of your loan.”
Thinking of locking in your rate for a few years? Our home loan comparison tool compares some of the top fixed rate deals around, giving you the financial security you need.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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