9:16am Mar 10, 2018

Australia’s big four banks have offered mortgage owners around the country some relief after cutting fixed rates on loans.

National Australia Bank and ANZ both announced they would be slashing fixed rates for owner-occupier and investment loans yesterday, following Commonwealth Bank Australia and Westpac who also made the cuts last week.

NAB reduced its five-year fixed rate on loans for owner-occupiers paying principal and interest on choice packages by 50 basis points from 4.59 percent to 4.09 percent.

NAB and ANZ Banks have joined Commonwealth Bank and Westpac in slashing fixed rates on owner-occupier and investment mortgage loans (AAP).

It also revealed it is cutting two- and three-year fixed rates on investor interest-only loans by 30 basis points from 4.49 percent to just 4.19 percent.

Meanwhile, ANZ will also be offering its customers who have three- and five-year fixed rates on their investor interest-only loans cuts of 40 basis points, reducing the rates from 4.89 percent and 5.39 percent to 4.49 percent and 4.99 percent respectively.

The move looks to provide Australian home owners some relief when it comes to mortgage repayments, while also allowing for the financial security of lower fixed rates.

The move will provide Australian home owners with some relief and financial security after rates were dropped by up to 50 basis points (Supplied).

Sally Tindall from RateCity.com.au said in a statement the moves reflect the big banks’ plans to avoid rate hikes in the near future.

“The series of cuts show competition has returned to the investor interest-only space,” she said.

“This is good news for people in the market who are looking for the financial security fixed rates can bring.

“Five years without having to worry about a rate hike is the kind of peace of mind a lot of home hunters are looking for.”

The rate drops come as CBA cut its 2-year fixed investor interest-only rate last Friday by 50 basis points and Westpac announced it will also be cutting the same loan offer by 14 basis points.

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https://www.9news.com.au/national/2018/03/10/09/03/australia-big-four-banks-cut-mortgage-interest-rates