NAB cuts fixed rate mortgages across all loan terms

NAB has announced it has cut its fixed rate mortgages across all loan terms.

The bank is the first of the big four banks to cut its fixed rates in 2025, two weeks out from the Reserve Bank of Australia’s first meeting when it is tipped to cut the cash rate.

NAB’s lowest fixed rate is now 5.84 per cent, with a deposit of at least 20 per cent on a three-year term, it announced on Monday.

“NAB is the first of the big four banks to cut fixed rates in 2025, with other banks likely to follow,” Canstar data insights director Sally Tindall said.

“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 fixed rate cuts from the big four was recorded on October 28, 2024 from ANZ.

NAB Economics expects the RBA to cut the cash rate by 25 basis points, saying inflation is easing more quickly than the RBA expected.

“We now expect the RBA to cut the cash rate by 25 basis points in February,” NAB Group chief economist Alan Oster said on Thursday.

“We still expect the cutting phase to be gradual, with the RBA taking the cash rate down to 3.1 per cent by February 2026.”

The cuts from NAB come almost two weeks after Macquarie Bank lowered its fixed rates, however, ANZ still has the lowest fixed rate out of the big four banks at 5.74 per cent for a two-year or three-year term.

“While a few banks are now starting to sharpen their offerings, fixed rates still have a way to fall before they become fashionable again with borrowers,” Tindall said.

“Many homeowners have been waiting for well over a year for a cash rate cut. It’s hard to see them throwing in the towel and switching to a fixed rate now when the RBA is poised to move.

“That said, there’s no guarantee we’ll see a barrage of cash rate cuts and borrowers should factor this into their thinking.”