NAB has cut some fixed home loan rates ahead of the next RBA decision. In simple terms, a fixed rate locks your interest for a set time. A cut means you may pay less if you fix now.
Think of it like locking in a fuel price before a road trip. If the price drops today and you lock it in, your costs are more predictable. For a $500,000 loan over 30 years, a 0.20% rate cut could trim about $55 a month during the fixed term. Over two years, that’s roughly $1,320 saved.
Why cut now? Banks often move before the RBA to stay competitive and manage funding costs. If the RBA holds or cuts later, fixing today could look smart. If the RBA hikes, a fixed rate can shield you from higher repayments.
Should you fix? Pick fixed if you want certainty, easier budgeting, and protection from rises. Pick variable if you want flexibility, unlimited extra repayments, and full offset benefits.
What to check:
– Term length: 1–5 years
– Fees, break costs, repayment caps
– Offset availability on fixed splits
– Package discounts or cashback
– Comparison rate, not just headline rate
Use a calculator and “stress test” at 1–2% higher. You can also split your loan: part fixed for certainty, part variable for flexibility.
Bottom line: NAB’s move gives you a chance to lock in stability. Compare options, talk to a broker or your bank, and choose the rate that fits your plans.
