NAB cuts investment loan rates to lowest in Big 4

NAB cuts investment loan rates to lowest in Big 4
NAB cuts investment loan rates to lowest in Big 4

NAB has cut the rate on its Base Variable Rate Special Offer for investors to bring the rate down to 3.09% for principal and interest loan repayments and 3.29% for interest only repayments.

These rates are well below the average variable rate investors say they are paying, with a recent Canstar survey finding investors are paying an average rate of 4.06%.

NAB cuts investment loan rates to lowest in Big 4

Canstar research shows that 16 lenders made cuts to 38 investment variable rates since July 1.

It comes as the latest ABS Lending Indicators data released last week pointed to a 8.1% rise in the value of new loan commitments to investors in June, but still down 6.1% on June 2019.

Canstar’s finance expert, Steve Mickenbecker said this is a sign that the banks are looking to entice investors.

NAB cuts investment loan rates to lowest in Big 4

“The housing market has been in the doldrums and new lending to investors in particular is even lagging the owner occupied market, leaving lenders competing hard for the quality business that is available,” said Mickenbecker.

“With new investment demand flat, the race is on for market share of the refinance market, and investors are a tried and tested group being targeted by lenders."

“With investors saying they are paying rates around 4.06%, it’s time they looked at refinancing. The lowest variable rate in the market for investors right now is almost 1.5% lower at 2.59% and the lowest fixed rate is down to 2.29%,” he concluded.

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Nab Investor Loans

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