Borrowers quit big four banks
Borrowers quit big four banks

Aggressive discounting of interest rates is causing borrowers to abandon the big four banks, figures reveal.

Non-major lenders have trebled their market share of new fixed-rate home loans over the past year, according to WA-based mortgage broker AFG.

But the National Australia Bank is fighting back, announcing yesterday it had dropped its four-year fixed rate to its lowest in two decades.

The NAB's new fixed rate is 5.44 per cent, compared with Westpac's 5.49 per cent, the Commonwealth Bank's 5.59 per cent and ANZ's 5.64 per cent. On more commonly offered three-year fixed loans, its rate is equal with the Commonwealth at 5.14 per cent.

"We know that now is the time people are looking to get their finances in order as they plan for the year ahead, especially those looking to buy their first home," NAB's personal banking executive Gavin Slater said.

Despite the NAB's move, it is still possible to get cheaper rates for three-year fixed loans than what the big four banks are offering, such as Credit Union Australia, which has a 4.79 per cent rate.

The West Australian

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