NAB takes the knife to fixed rates ahead of RBA August decision

NAB has today cut its short-term fixed home loan rates by up to 0.20 percentage points, less than three weeks out from the RBA’s next cash rate decision. As a result of these changes, NAB’s lowest rate is 6.34% for two years. NAB fixed rate changes Old rates New rates Change %-pts 1-year 6.49% 6.44% -0.05 2-year 6.54% 6.34% -0.20 Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR conditions apply. Majority of lenders are cutting fixed rates NAB’s cut today goes firmly with the tide, following weeks of fixed rate cuts from lenders big and small. Tracking by Canstar shows 21 lenders have cut at least one fixed rate since 1 June, including ANZ which cut select fixed rates up to 0.10 , while Macquarie cut its fixed rates by up to 0.50. By comparison, just 10 lenders have hiked a fixed rate in the same period, including big bank Westpac, albeit by 0.05 on its 1- to 3-year fixed rates. Source: Canstar Out of the big four banks, Canstar rate tracking shows ANZ still leads the majors with the lowest fixed rate on offer, which is a two-year loan for 6.29%. Big four banks lowest fixed rates 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% Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply. Big banks still split on the future of the cash rate While many economists expect the cash rate to remain on hold following the RBA’s August meeting in 20 days’ time, the central bank’s next move is contested. Westpac is still expecting two more cash rate hikes – one at the next meeting in August and another one potentially in September. CBA, NAB and ANZ believe the cash rate has now peaked. All four banks expect RBA cuts next year. Current big four bank cash rate forecasts 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 NAB not alone in cutting fixed rates Canstar's Data Insights Director, Sally Tindall, says, “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.” “The majority of lenders have been moving fixed rates lower since the start of June, suggesting the market believes the cash rate has either peaked or is very close to it. That’s despite the fact the RBA has warned it will fire off more hikes if the data warrants it. “While fixed rates are starting to head back down to Earth, they’re still a far cry from being competitive. It’s difficult to see many customers rushing to fix their mortgage with a rate that starts with a ‘6’. “ANZ might have the lowest fixed rates out of the majors, but Macquarie is well below them at 6.09 per cent while there are now four different lenders offering a fixed rate under the 6 per cent mark at 5.99 per cent. “There’s a lot of data still to come between now and when the RBA next meets, with the ABS Labour Force figures out tomorrow and CPI next week. 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. “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.” Lowest fixed rates on Canstar Term Lender Rate from 1-year Northern Inland, Transport Mutual 5.99% 2-year Queensland Country Bank 5.99% 3-year Police Credit Union 5.99% 4-year Macquarie Bank 6.29% 5-year Macquarie Bank 6.29% Source: Canstar. Rates based on owner occupier loans. LVR and other requirements apply. Excludes green loans. With nearly 20 years of experience across journalism and public relations, Laine Gordan excels at translating complex financial data into clear, compelling stories for everyday Australians. Before joining Canstar, she held senior editorial and research roles covering everything from banking and credit cards to budgeting and lifestyle. As a strategic communicator and seasoned spokesperson, Laine specialises in spotlighting the trends that matter most—from interest rate movements to cost-of-living pressures. Her work aims to help Australians navigate the complexities of the financial landscape and take control of their personal finances.