Major bank trims fixed home loan rates by up to 0.20%, with its lowest now sitting at 6.34% for a two-year term
NAB has reduced its short-term fixed home loan rates by up to 0.20 percentage points, less than three weeks before the Reserve Bank of Australia's next cash rate meeting.
The cuts bring NAB's lowest fixed rate to 6.34% over two years, adding the major bank to a growing list of lenders moving rates downward since the start of June.
According to data from Canstar.com.au, 21 lenders have cut at least one fixed rate since 1 June. ANZ trimmed select fixed rates by up to 0.10 percentage points over the period, while Macquarie reduced its fixed rates by as much as 0.50 percentage points. By contrast, 11 lenders raised a fixed rate in the same period, including Westpac, which lifted its one- to three-year fixed rates by 0.05 percentage points.
Of the big four banks, Canstar.com.au tracking shows ANZ still holds the lowest fixed rate among the majors at 6.29% for a two-year loan.
| CBA | Westpac | NAB | ANZ | |
|---|---|---|---|---|
| 1-year | 6.49% | 6.44% | 6.44% | 6.34% |
| 2-year | 6.34% | 6.34% | 6.34% | 6.29% |
| 3-year | 6.59% | 6.54% | 6.49% | 6.49% |
| 4-year | 6.64% | 6.69% | 6.49% | 6.54% |
| 5-year | 6.79% | 6.69% | 6.49% | 6.59% |
The rate movements come as economists remain divided on the RBA's next move. Westpac continues to forecast two further cash rate increases — one at the August meeting and a potential second in September — while CBA, NAB, and ANZ hold the view that the cash rate has already peaked. All four major banks expect the RBA to begin cutting rates next year.
| August meeting | Next move | Forecast | |
|---|---|---|---|
| CBA | Hold | Down | 2 x 0.25 cuts in May 27 + Aug 27 |
| Westpac | 0.25 hike | Up | 2 x 0.25 hikes, Aug 26 + Sep 26, 4 x 0.25 cuts from Aug 27 |
| NAB | Hold | Down | 2 x 0.25 cuts from Q2 27 |
| ANZ | Hold | Down | 2 x cuts from Q3 27 |
Key economic data releases, including the Australian Bureau of Statistics Labour Force figures and the next Consumer Price Index reading, are due before the RBA meets, and are likely to influence expectations on both the cash rate and fixed rate direction.
"NAB has joined the fixed-rate cutting brigade, shaving up to 0.20 percentage points off its shorter-term fixed loans, even though the RBA's next cash rate decision is still weeks away," said Sally Tindall (pictured right), data insights director at Canstar.com.au.
Tindall noted that most lenders had been moving fixed rates lower since the start of June, suggesting the market believes the cash rate has either peaked or is close to it — despite the RBA's warnings that further hikes remain possible if economic data warrants them.
She added that while fixed rates were beginning to ease, they remained far from competitive, making it unlikely that many borrowers would rush to lock in a rate still beginning with a six.
"It’s fair to say the future of the cash rate, and to an extent, fixed rates will depend on what comes through in the next couple of weeks," Tindall said.
“Westpac is still forecasting another two hikes this year, while NAB, CBA and ANZ believe rates have already peaked. That disconnect highlights just how uncertain the outlook remains. Borrowers considering fixing should base their decision on whether they value repayment certainty over flexibility, rather than trying to outguess the RBA.”
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