This week, National Australia Bank (NAB) cut various home loan rates to record lows. Its NAB Choice Package fixed-rates now start from 2.19% p.a. (comparison rate 4.02% p.a*) for two-years, making it the lowest interest rate of any of the big four banks.  

Effective 18 June, NAB cut the rates of a range of home loan products, including five owner occupier products and four investor related fixed interest products. It should be noted, these cuts refer to principal and interest loans only.

Of particular note is the no-frills NAB Base Variable Rate special offer. NAB has dropped this by 15 basis points to a historical low of 2.69% p.a. (comparison rate 2.69% p.a*). Again this if for owner-occupiers paying principal and interest, however the caveat is you need at least a 20% deposit.

This rate is the equal 'lowest variable rate' among the big four banks at the time of writing, matching Westpac's lowest variable offering of 2.69% (comparison rate 2.70%).

All other loans modified by NAB have dropped by 10 basis points.

All in all, NAB fixed rates have been reduced for both owner-occupiers and residential investors paying principal and interest, with NAB Choice Package fixed rates now starting at 2.19 per cent p.a. for owner-occupiers and 2.49 per cent p.a. for residential investors.

InfoChoice compares over hundreds of P&I, owner occupier variable interest rates and you can see how NAB compares to other lenders. Here are the top five in terms of lowest fixed interest rates for owner occupiers, based on a three-year fixed, $400,000 loan.

Here are InfoChoice's top five fixed rate home loans for Property Investors based on three year, $400,000 loan:

NAB helping first home buyers

At the same time as announcing its interest rate cuts, NAB also announced that it had supported more than 1,000 Australians purchase their first home through the First Home Loan Deposit Scheme.

Preparation are now being prepared for thousands more to benefit as the next round of places open on 1 July. Westpac reached this milestone in April this year.

This is an important initiative during COVID-19, which has driven large change in the property market.

The First Home Loan Deposit Scheme is an initiative by the Australian Government to support eligible first home buyers purchase a home sooner. The Scheme provides a guarantee to lenders to allow eligible first home buyers on low and middle incomes to purchase a home with a deposit as low as 5 per cent of the purchase price.

NAB Group Executive, Personal Banking, Rachel Slade said the First Home Loan Deposit Scheme, as well as NAB's introduction of new low rates, would help customers at a time when the coronavirus crisis had driven significant change in the property market.

"It's great to see so many Australians purchase their first home sooner than they expected, even at a time when the coronavirus crisis has impacted the housing market," Ms Slade said.

"We have seen a diverse range of customers access the Scheme. We're seeing both young homebuyers in their 20s or 30s, and customers in their 50s, buying their first property."

First home buyers who are interested in accessing the scheme, can book an appointment at

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This update is not financial advice. This article is general news and information.

Home Loans: The comparison rates are based on a secured loan amount of $150,000 and a term of 25 years.

Personal Loans: The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless otherwise indicated in the product name with^, in which case, the comparison rate is based on a loan of $10,000 and a term of 3 years. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise.

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements

InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.