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NAB hikes fixed rates

NAB hikes fixed rates

Laine Gordon

15 Sep, 2021 - 3 min read

Australia’s third largest bank, NAB, has today hiked fixed rates by up to 0.30 per cent for terms of 3 years and above.

This is the second time NAB has hiked its 3- and 4-year fixed rates in the last three months.

Despite the hikes, NAB still has one rate under 2 per cent – its two-year fixed rate at 1.99 per cent.

NAB rate changes

Rate type	Old lowest rate	New lowest rate	Change
3-year fixed	2.08%	2.18%	+0.10%
4-year fixed	2.24%	2.49%	+0.25%
5-year fixed	2.49%	2.79%	+0.30%

Note: Rates are for owner-occupiers paying principal and interest with NAB’s package loan. NAB also hiked its basic fixed rates for 3, 4 and 5 years.

RateCity.com.au research director, Sally Tindall, said the rate hikes came as no surprise.

“Australia’s two largest cities might still be in lockdown but there is widespread agreement this bump in the road is only temporary,” she said.

“Governor Lowe has made it clear rates will not rise until at least 2024. As a result, many banks are still hiking rates of three years and over, however, cuts to two-year rates have slowed.

“NAB has been careful to keep its two-year fixed rate under 2 per cent. Without this rate the bank could struggle to keep new customers coming in the door in what remains an ultra-competitive market.

“These fixed rate hikes won’t impact how much someone can borrow, as banks base serviceability tests on the revert rate. However, they do serve as a reminder these rates aren’t going to stick around forever,” she said.

Lowest big four bank owner-occupier home loan rates

	CBA	Westpac*	NAB	ANZ
1 yr fixed	2.09%	1.99%	2.09%	2.04%
2 yr fixed	1.99%	1.89%	1.99%	1.94%
3 yr fixed	2.19%	1.98%	2.18%	2.04%
4 yr fixed	2.29%	2.49%	2.49%	2.49%
5 yr fixed	2.99%	2.79%	2.79%	2.69%
Variable	2.69%	1.99% for 2 yrs then 2.49%	2.69%	2.72%

Source: RateCity.com.au. *Note: Westpac's rates are for a loan to value ratio of up to 70%.

Lowest rates on the RateCity.com.au database

	Lender	Rate
1 yr fixed	Greater Bank	1.69%
2 yr fixed	St George, Bank of Melbourne, Greater Bank	1.79%
3 yr fixed	UBank, 86 400	1.85%
4 yr fixed	Teachers Mutual	2.14%
5 yr fixed	Freedom Lend	2.27%
Variable	Reduce Home Loans	1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.

Disclaimer

This article is over two years old, last updated on September 15, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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Product database updated 16 Nov, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Laine Gordon

Money Editor

Laine Gordon is the Money Editor at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.