Following CBA’s latest cuts to its fixed rate loans, NAB and ANZ have moved to drop their rates for both owner occupiers and investors by as much as 50 basis points.
This latest trend in rate reductions comes as data shows demand for fixed rate home loans has fallen for the sixth month in a row. Mortgage Choice’s latest national home loan approval data found that fixed rate home loans accounted for only 21.75% of all loans written in February – down from more than 28% six months ago.
Between the two banks, ANZ made more cuts than NAB, most of them in investor lending, data from comparison site Mozo shows.
ANZ slashed its fixed rates across all terms – from one year to five years – for both interest-only and P&I investor loans, effective last Friday (9 March).
For owner occupier loans, it dropped its rate only for its three-year fixed P&I loan.
Meanwhile, NAB made the biggest cut, slashing its rate for five-year fixed P&I loans by 50 basis points to 4.09%.
It also reduced its rates for its two-year and three-year fixed interest-only loans for owner occupiers.
For investor products, NAB reduced its rates for its two-year and three-year fixed interest-only loans.
A spokesperson for NAB told Australian Broker that the bank is still offering its lowest fixed rate for first home buyers at 3.69% p.a. for two years.
“We want to help Australians achieve their property goals. Fixed rate home loans provide certainty for customers, that their repayments will remain the same for the fixed rate term,” said the spokesperson.
While all three major banks have reduced their fixed rates, Westpac has gone the other way around by increasing its fixed rates for both owner occupier and investor loans.
This story was first published in our sister publication Australian Broker.