NAB undercuts big rivals on one-year fixed rates

The battle for fixed-rate borrowers continues with NAB cutting its one-, two- and three-year fixed rate mortgages.

The bank’s one year fixed-rate product has been cut by 15 basis points to 6.34%, bringing it under that of its major bank rivals but still higher than Greater Building Society’s one-year rate.

Commonwealth Bank’s one-year fixed rate is 6.38%, followed by ANZ on 6.39% and Westpac on 6.49%.

NAB has also cut its two-year and three-year fixed-rate products by 10 basis points to 6.39% and 6.34% respectively.

NAB’s rate cuts follow September figures put out by AFG showing a big jump in fixed rate mortgages processed by its brokers.

About 16.6% of all new home loans processed by AFG brokers in September were fixed-rate products, compared with 9.4% in August.

Yesterday, NAB’s head of business lending Joseph Healey claimed the bank was feeling no ill effects from consistently cutting its mortgage rates.

NAB executive general manager of consumer product solutions John Salamito points to the latest Reserve Bank of Australia figures that show that NAB continued to grow its home lending above average market growth for the 20th month in a row.

He also turned up the heat on its big four rivals.

“NAB has offered the lowest standard variable interest rate amongst the major banks for more than two years, as well as continuing to offer competitive fixed rates,” he says.

“Our latest adjustments to fixed rates reflect current markets and our commitment to offering customers competitive rates.”