October 8th 2024.
In the midst of the ongoing struggle with the rising cost of living, one of the major banks has taken a step to provide some relief to its customers. The National Australia Bank (NAB) has announced a reduction in its fixed interest rates for both homeowners and investors for all fixed-term loans.
According to Canstar, a trusted rate tracking company, NAB has decreased the fixed rates for owner-occupied properties by up to 0.50 percentage points. For investors and those paying interest-only, the cuts are even more substantial, with a reduction of up to 0.65 percentage points. This move by NAB comes as a welcome relief for borrowers, especially in the current economic climate.
NAB's lowest fixed rate now stands at 5.89 per cent for owner-occupiers who are paying off their principal and interest and have a deposit of 40 per cent or more. This is the second time in the past two and a half months that NAB has made such adjustments, following the footsteps of Macquarie Bank last week. Interestingly, these changes have been made despite the Reserve Bank's decision to keep rates unchanged.
As per recent reports, Australian borrowers have been struggling to make their monthly home loan repayments, with billions of dollars being paid in interest charges alone. Data from the Reserve Bank's Housing Loan has revealed that in June 2024, mortgage holders were charged a whopping $14.5 billion, out of which 66 per cent was just interest. This amount has seen a significant increase from March 2022 when the total repayment was $9 billion.
In these challenging times, NAB's decision to lower its fixed rates is a ray of hope for many borrowers. It is a move that is sure to be appreciated by those feeling the burden of high home loan repayments. As we wait for the Reserve Bank to make any changes to the rates, let's hope that other banks follow NAB's lead and provide some much-needed relief to their customers. And for the latest updates on breaking news, celebrities, and sports, don't forget to follow us on our WhatsApp channel. We promise no comments, no algorithms, and complete privacy of your personal information.
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