National Australia Bank has again cut fixed interest rates to their lowest level in more than 20 years. NAB has today announced it will lower the Choice package interest rate for its three-year term by 0.11% to 4.94%p.a, its four-year term by 0.45% to 4.99%p.a. and its five-year term by 0.70% to 4.99%p.a.

The cuts mean NAB is offering rates of less than five per cent across its one, two, three, four and five-year packaged home loans. These rates will be effective from Friday 25 July. ‘

“NAB is not just cutting its five-year rate, we’re also cutting the three and four-year rates – that gives our customers the choice of five rates under five per cent,” NAB Group Executive Personal Banking Gavin Slater said.

“NAB is committed to driving competition in the banking industry and providing our customers with the best products and great service, because what’s good for our customers
is good for our business.

“It’s good to see some of our competitors try and catch up.” Mr Slater said NAB had seen an increased demand for fixed-rate home loans in the past 12
months.

“We know many home owners are looking for certainty, whether they are investors or first home buyers, and NAB is offering that through these market-leading fixed home loan rates,” he said.

“NAB has led the industry in making banking fairer and simpler for customers for five years through measures such as the abolition of numerous fees and offering competitive rates.”

Major banks’ announced packaged fixed principal and interest rates as at 23 July:

Term NAB (pa) ANZ (pa) CBA (pa) Westpac (pa)
1 year 4.79% 4.79% 4.79% 4.79%
2 year 4.84% 4.84% 4.84% 4.84%
3 year 4.94% 5.05% 5.09% 5.09%
4 year 4.99% 5.64% 5.59% 5.49%
5 year 4.99% 5.79% 4.99% 5.79%