Is ‘ultra-cheap’ funding on its way out?
A second big four bank has gone and hiked its fixed home loan rates for owner-occupiers. ...
NAB has become the last major to slash its fixed rate products to one of the lowest prices offered by the big five.
Effective from today, the lender has cut 20 basis points from its three year fixed rate loan taking it to 7.39 per cent – in line with Westpac who had, until today, offered the cheapest three year fixed rate mortgage of majors.
The sharp pricing of both its variable and fixed rates underpins NABs drive for increased market share. The lender has now offered the lowest variable rate at 7.24 per cent for six months – 27 basis ponts lower than Westpac.
Speaking about the rate cut, a NAB spokesperson said that movements in the interbank swap rates have been volatile due to the funding situation in Europe.
“While uncertainty continues, effective today we have lowered our 3 year fixed rate product, reflecting the first drop in the 3 year swap rate since May,” the spokesperson said.
“Customer demand for fixed rate products has increased slightly since February however is still substantially lower than the first half of last year.”