Mortgage Rate cuts!!

[Andrew from Vista Financial]

A few Banks have recently announced they are/will be lowering there Fixed rate deals, more noticably NAB.

 

 

National Australia Bank Ltd (NAB) has cut its fixed home loan rates by up to one percentage point, as the government's bank deposit guarantee helped lower the cost of funding.

The bank will reduce its one-year introductory fixed home loan rate to 4.99 per cent, from 5.99 per cent, effective December 1.

NAB said it would also lower its three-year introductory fixed rate to 5.89 per cent, from 6.89 per cent.

The lender will also cut its non introductory fixed rates by a full percentage point.

NAB executive director Ahmed Fahour said the government's bank deposit guarantee helped balance the effects of the global financial crisis.

"This year has been extremely volatile, so we are pleased to see some relief in our fixed rate cost of funds," Mr Fahour said.

The government's bank deposit and wholesale funding guarantees was introduced today. Meanwhile, economists expect the Reserve Bank of Australia (RBA) to lower the official cash rate by 75 basis points when it meets on Tuesday.