NAB lowers fixed home loan rates



NAB has today announced cuts to some fixed home loan rates of up to 55 basis points, including a second rate below 2%. Further details as well as commentary on the housing market are below.

Quotes attributable to NAB Executive, Home Ownership, Andy Kerr:

NAB rate cuts

“Rates remain at historic lows and at NAB, we’re excited to offer even lower rates to our customers across most of our fixed rate terms from today.

“Both our 3- and 4-year fixed rates for owner-occupiers paying principal & interest are now below 2 per cent, a level that would have seemed unbelievable just a few years ago. These changes will also offer our lowest ever rate to property investors.

“NAB customers on a variable rate can quickly and easily switch to a fixed rate in our app, with hundreds of our customers taking this option every week.”

NAB home lending applications strongest in 5 years for January

“We’re seeing very strong demand in the housing market with activity post-Christmas picking up much more quickly than usual. This has come despite the ongoing challenges presented through the pandemic.

“For the past few months home lending applications have been at their highest level in several years as buyers flock back into the market after a quiet period through the nationwide lockdowns.

“We expect the current trends to continue in the near-term given the historic low rates and government support programs.

“NAB is currently forecasting house price growth of around 10 per cent for Australia’s capitals in 2021, with apartment price growth likely to be a bit more subdued, particularly in Melbourne and Sydney.”

Additional information

  • NAB’s lowest rate available is 1.98% p.a. – this rate is now available for both 3- and 4-year fixed rate home loans (for owner-occupiers paying principal & interest on the NAB Choice Package). The 3-year fixed rate has been lowered 11bps today, while the 4-year fixed rate has remained stable.
  • The biggest cut of 55bps was to NAB’s 5-year Choice Package fixed rate for owner-occupiers paying P&I. That rate is now 2.29% p.a.
  • Fixed rates for investors have been reduced by between 5 and 15bps.
  • The lowest investor rate is 2.44% p.a. for both 2- and 3-year fixed rate loan (P&I on NAB Choice Package). NAB’s previous lowest rate for investors was 2.49% p.a.

For more information on current rates, or to book an appointment with our specialist team of lenders, visit


Important information

The actual rate that will apply will be the effective fixed rate as at the day of drawdown, unless the customer takes out Rate Lock and that interest rate is lower than the advertised fixed rate at drawdown. This means that applications submitted prior to Monday 22nd February 2021 and where drawdown occurs after this date will be eligible for the new rate. Please note that customers are not entitled to a refund of the Rate Lock fee even if they receive a lower interest rate at drawdown.

The above fixed rate changes do not impact existing loans. NAB may change rates, including any special rate offer, at any time without notice.

Fixed rate loans may be subject to significant break costs.  NAB Fixed Rate Home Loan products are not eligible for an interest offset arrangement, and customers cannot redraw any additional repayments you’ve made during the fixed rate period.

Terms and Conditions apply to all NAB products and are available on request. NAB lending criteria applies. National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.



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