In a move that is likely to bring relief to homeowners and prospective buyers alike, the National Australia Bank (NAB) has made a significant adjustment to its mortgage offerings. As the first of the big four banks to announce such a change in 2025, NAB has slashed its fixed rate mortgages across all loan terms, signalling a potential shift in the housing finance landscape.
This strategic decision comes just two weeks before the Reserve Bank of Australia’s (RBA) first meeting of the year, where it is widely anticipated that the cash rate may be cut. With the cost of living and housing affordability being hot topics for Australians, especially those who are considering downsizing, refinancing, or entering the property market, this news is particularly timely.
NAB’s lowest fixed rate has now been set at 5.84 per cent, applicable to those who can provide a deposit of at least 20 per cent on a three-year term. This competitive rate is a beacon for those looking to lock in their mortgage payments and avoid the uncertainty that comes with variable rates, especially in a fluctuating economic environment.
Sally Tindall, Canstar data insights director, has noted that ‘NAB is the first of the big four banks to cut fixed rates in 2025, with other banks likely to follow.’ She adds, ‘The cost of wholesale fixed rate funding has started to ease slightly. This, combined with a prospective cash rate cut, should push other banks into moving on fixed rates.’
The last time the big four banks made headlines for cutting fixed rates was back on October 28, 2024, when ANZ took the lead. Now, with NAB’s recent announcement, there’s an air of competition that may prompt further rate cuts from other major banks, creating a more favourable borrowing environment for consumers.
As NAB leads the way with lower mortgage rates, this could be the perfect time for many homeowners to reassess their options. Whether you’re looking to lock in a more stable rate or exploring other financial strategies, it’s important to consider how these changes impact your situation.
What do you think—are you considering refinancing or taking advantage of the new rates? How do you feel about the shifting mortgage landscape in 2025? We’d love to hear your thoughts! Share your comments below and join the conversation.
Also read: Commonwealth Bank’s possible RBA interest cut: Here’s how much you could save on repayments
