NAB bank dramatically cut interest rates for millions of Australians: Here’s how much you’ll save

A major Australian bank has cut variable mortgage rates even though borrowers have received no relief from the Reserve Bank.

NAB has reduced its base rate for owner-occupiers by 40 basis points, lowering variable rates to 6.44 per cent.

But it’s far from the lowest variable rate from a Big Four bank – ANZ offers 6.14 per cent and Commonwealth Bank charges 6.15 per cent on their digital-only home loans.

The latest NAB cut is a sign of intensified competition from major banks, even though Reserve Bank of Australia Governor Michele Bullock has hinted at another possible rate hike.

Canstar data analytics director Sally Tindall said that while the NAB offer was only for new customers, it meant borrowers from major banks had room to negotiate a better deal on their loan.

“If you’re already a customer, there’s absolutely nothing stopping you from picking up the phone and asking for a rate cut,” he said.

While major banks offer variable rates starting at a ‘six’, analysis by Canstar showed 38 smaller lenders had variable rates below that level.

This month, the Reserve Bank of Australia left the cash rate unchanged at 4.35 percent, leaving borrowers without relief even though the United States, the United Kingdom, Canada, the European Union and New Zealand They already cut rates this year.

Australia’s big four banks now expect the RBA to start cutting rates in February.

But the 30-day interbank lending market will see no relief from August, and traders now only expect a rate cut in 2025.

In October, the market expected four rate cuts from the RBA.