NAB hikes new customer variable rates for the 3rd time in 3 months

NAB has today increased the rate on its advertised basic variable home loan by 0.10 percentage points, but only for new customers with big deposits.

This is the third time the bank has increased this rate for new customers in the last three months, in addition to the standard RBA hikes.

As a result, NAB’s lowest variable rate has risen by 0.75 percentage points since 1 March 2023, while existing customers have seen their rates rise by 0.50 percentage points – that’s 0.25 percentage points extra for new customers.

Changes to NAB’s Basic Variable Rate – new customers only

For owner-occupiers paying principal and interest

Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest.

NAB is not hiking new customer rates in isolation. All four big banks have increased new customer rates in the last three months in addition to the RBA rate hikes in March and May.

Variable rate hikes from the big four banks since 1 March 2023

Note: these hikes are in addition to RBA increases

Source: RateCity.com.au.

RateCity.com.au research director, Sally Tindall, said: “NAB has now done a complete 180 on its new customer offering.”

“Just over a week ago, the bank announced it was scrapping its cashback from 30 June, this week it’s hiking select new customer rates, yet again,” she said.

“As a result, someone who took out NAB’s lowest advertised rate loan at the start of May last year is now on a lower rate than what’s on offer from the bank today. That’s not something you see everyday.

“NAB’s moves are in lock-step with its big bank rival CBA, which has hiked new customer rates three times in the last three months, and has pledged to scrap its cashback from next week.

“For months, the big banks were stoking the refinancing fire by slashing new customer rates and laying down sizeable cashback offers. Now the churn has gotten out of control, they’re desperately trying to douse it.

“Some existing customers with these big banks might now be on sharper rates than new customers, but that doesn’t automatically mean they’re getting a good deal.

“CBA and NAB might have turned their backs on the competition, but there’s plenty of other lenders willing to offer discounts and cashbacks to customers looking for rate relief.

“After 30 June, there could still be 27 lenders offering cashback deal, provided no other banks pull the pin on their offers before then,” she said.

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