NAB cuts interest rates despite Reserve Bank holding firm

One of the big four banks has cut fixed interest rates, amid the ongoing cost of living crisis.

National Australia Bank has made cuts to its fixed mortgage rates for both owner occupiers and investors across all fixed-rate loan terms,

NAB has cut owner-occupier principal and interest fixed rates by up to 0.50 percentage points and investor and owner-occupier interest-only fixed rates by up to 0.65 percentage points, according to rate tracking by Canstar.

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The bank's lowest fixed rate is now 5.89 per cent for owner-occupiers paying principal and interest with a 40 per cent deposit or more.

This is the second time NAB has made cuts in the last two and a half months and follows on from Macquarie's cuts to fixed rates last Thursday, Canstar said.

That's despite the Reserve Bank holding rates.

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Last month Australian borrowers were said to be crippled by billions in monthly home loan repayments as they desperately await rate cuts.

Data from the Reserve Bank Housing Loan has found mortgage holders were charged about $14.5 billion in June 2024 - a staggering 66 per cent of which was just interest charges.

This amount has increased by $5.5 billion compared to home loan repayments in March 2022, when about $9 billion was charged.

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