NAB makes 'whopping' home loan interest rate cut but lifts some other rates


Borrowers are set for an interest rate shake-up today, with National Australia Bank (NAB) raising interest rates across many of its fixed rate home loan products, but lowering a number of variable and one-year fixed rates.

NAB Fixed Rate Cut
NAB has adjusted the interest rates on some variable and fixed rate home loans. Source: Alex Cimbal/

National Australia Bank’s home loan rate changes

NAB has today cut interest rates on many of its one-year fixed home loan products – as well as some variable rates for owner-occupiers – while raising rates across a number of other fixed home loans. For example, it cut the rate on its owner-occupier Choice Package product by 0.10 percentage points, taking it below the 2% mark to 1.99% (comparison rate 4.15%). NAB also increased interest rates by 0.10 percentage points each on its two-, three- and four-year owner-occupier fixed rate home loan products, and raised the rate on five-year fixed owner-occupier loans by 0.20 percentage points.

The bank has made similar moves across many of its fixed rate home loan products for owner-occupiers, lowering the interest rate on one-year fixed rate loans on its Portfolio Package/Private Portfolio Package and Choice Package/Private Tailored Package home loans, while raising rates on the same loans across two, three, four and five year fixed rate terms. For investors, NAB has also cut rates on one-year fixed rate products while raising rates on two, three four and five-year fixed products.

On the variable rate front, NAB cut rates on its Base Variable Rate product by 0.40 percentage points to 2.29% (comparison rate 2.33%) for owner-occupiers with a loan-to-value ratio (LVR) of up to 80% (a deposit of at least 20%), and by 0.05 percentage points to 2.99% (comparison rate 3.03%) for borrowers with a higher LVR than this.

What do today’s changes mean for Australian home buyers?

Canstar finance expert Steve Mickenbecker said of the changes: “NAB is the last of the major bank dominoes to fall, announcing that it is joining its peers in cutting its one-year fixed rate and hiking longer-term rates. NAB has also followed Commonwealth’s lead in cutting its basic variable rate, in NAB’s case by a whopping 0.40 percentage point decrease for deposits of 20% or more.” 

Mr Mickenbecker said that the banks are “very keen” to entice variable rate loan customers, in expectation that we will be in a rising interest rate environment in a couple of years. “Borrowers with smaller deposits below 20% will be paying a huge margin above the higher deposit group, 2.99% compared to 2.29%, which is not great news for first home buyers.”

He said that when the reserve bank next meets on Tuesday, November 2, the expectation is that it will leave the official cash rate unchanged at 0.10%, but the big bank moves over the last two weeks demonstrate that the banks will “do their own thing” when it comes to home loan interest rates.

“The other likelihood is that when the banks do their own thing, the big four are all likely to do much the same thing,” he said.

“At the moment, that is low variable and one-year fixed rates, and rates for fixed terms beyond a year drifting up.”

How do NAB’s home loan rates compare?

The below list shows the lowest owner-occupier home loan rates currently available for fixed home loans, according to Canstar’s database.

The figures are based on a $500,000 loan and any LVR.

It could pay for borrowers to compare home loans, to see if they could be getting a better deal on their mortgage, and to understand the comparison rate of a home loan.

Lowest fixed home loan rates on Canstar’s database

  • 1-year fixed: Greater Bank’s Great Rate Discount Fixed 1-year loan $150k+ 80% LVR (interest rate 1.59%, comparison rate 2.15%)
  • 2-year fixed: Greater Bank’s Great Rate Discount Fixed 2-year loan $150k+ 80% LVR (interest rate 1.59%, comparison rate 2.10%)
  • 3-year fixed: Community First CU’s Accelerator Package Fixed Principal & Interest 3-year loan Special Offer 80% LVR (interest rate 1.79%, comparison rate 3.12%)
  • 4-year fixed: Freedom Lend’s Freedom Fixed Principal & Interest 4-year loan 70% LVR (interest rate 2.27%, comparison rate 2.03%)
  • 5-year fixed: Freedom Lend’s Freedom Fixed Principal & Interest 5-year loan 70% LVR (interest rate 2.27%, comparison rate 2.05%).

Source: – 27/10/2021. Based on owner-occupier fixed rates available for a loan of $500,000 and principal and interest repayments. Comparison rate calculated based on a loan of $150,000 with a 25-year loan term. Read the Comparison Rate Warning. Top rate in each term based on the lowest rate, followed by lowest comparison rate.

Cover image source: Alex Cimbal/

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This content was reviewed by Sub Editor Tom Letts and Deputy Editor Sean Callery as part of our fact-checking process.

Alasdair has more than 15 years of experience as a journalist, and he specialises in property and lifestyle topics for Canstar. He has a Bachelor of Laws (Honours) from the University of Queensland and has lectured at QUT. His work has appeared in outlets including Pedestrian.TV, the ABC and Junkee.

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