NAB cuts variable investor interest-only rate by 30 basis points to 2.99 per cent

The NAB has cut its variable investor interest-only rate by 30 basis points to 2.99 per cent. The big four lender also cut its variable principle and interest loan for investors with an 80 per cent or less loan/value ratio to 2.79 per cent last week. “NAB wants a bigger slice of the action in the investor market and have been tweaking both their serviceability rules and their rates to attract new business, after losing ground to its competitors in this arena," RateCity.com.au research director Sally Tindall said. With new lending to investors in March growing the fastest rate in 18 years, the NAB was attempting to increase its share. “These are our lowest ever advertised variable rates for property investors,” NAB executive for home ownership Andy Kerr told The Australian. NAB offers the lowest rate for that class of loan of the big four banks, but smaller lenders have lower offers. Citi is offering 2.59 per cent, ING 2.64 per cent, HSBC and Macquarie 2.69 per cent and UBank 2.74 per cent. Last week the NAB’s group chief economist Alan Oster noted the recent small rises in four and five-year fixed-rate home loans for owner occupiers reflected growing inflationary fears in the bond market however borrowers are unlikely to be caught out by steeper rises until 2025. Oster said adjustments in longer term fixed-rate loans are the result of a sell-off on the bond market as investors worry there is too much stimulus in the market and central banks will need to begin tightening, the AFR noted.