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NAB increases basic variable rate for new customers with big deposits
Australia’s third largest home loan lender, NAB, increased the rate of its basic variable mortgage by 0.10 percentage points for new customers with deposits of 20 per cent or more, effective Friday 28 July 2023.
The bank also raised fixed rates on Friday.
Change to NAB’s basic variable rate – existing customers are not impacted
| Deposit size | Old rate | New rate | Change %-pts |
| 20 per cent | 6.24% | 6.34% | +0.10 |
| Less than 20 per cent | 7.19% | 7.19% | 0.00 |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
Looking at the big banks’ lowest rates, NAB now has the highest on offer, however, Westpac’s rate of 5.99 per cent is an introductory rate for two years only.
Big four banks’ lowest advertised variable rates
| Rate type | CBA | Westpac | NAB | ANZ |
| Basic variable | 6.29% | 5.99% for 2yrs
then +0.40% | 6.34% | 6.19% |
| Var. with offset | 6.24%
+ $395 annual fee | 7.19%
+$395 annual fee | 7.32%
+$8 / mth fee | 6.99%
+$10 / mth fee |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
The big four banks collectively have now increased at least one advertised new customer variable rate on 19 occasions since 1 March 2023.
Variable rate hikes from the big four banks since 1 March 2023
Note: these hikes are in addition to RBA increases
| Date | Bank | Loan | Change (in addition to RBA hikes) %-pts |
| 1-March 23 | CBA | Basic variable | up to 0.10 |
| 1-Mar + 10-Mar 23 | NAB | Basic variable | up to 0.20 |
| 25-March 23 | CBA | Basic variable | up to 0.70 |
| 28-March 23 | ANZ | Basic variable | up to 0.21 |
| 31-March 23 | CBA | Package loan | up to 0.20 |
| 13-April 23 | Westpac | Basic variable | 0.10 |
| 14-April 23 | CBA | Package loan | up to 0.12 |
| 21-April 23 | ANZ | Basic variable | up to 0.10 |
| 28-April 23 | NAB | Basic variable | up to 0.05 |
| 12-May 23 | CBA | Basic + package | up to 0.10 |
| 23-May 23 | NAB | Basic variable | up to 0.10 |
| 24-May 23 | CBA | Package loan | up to 0.10 |
| 16-June 23 | CBA | Basic variable | up to 0.10 |
| 23-June 23 | CBA | Package loan | up to 0.10 |
| 23-June 23 | Westpac | Basic variable | 0.15 |
| 14-July 23 | CBA | Basic variable | up to 0.07 |
| 27-July 23 | ANZ | Basic variable | up to 0.15 |
| 28-July 23 | NAB | Basic variable | up to 0.10 |
Source: RateCity.com.au
Lowest variable rates available on RateCity.com.au database
| Lender | Advertised variable rate | Deposit size required |
| Fire Services Credit Union | 5.39% | 40%+ |
| Mortgage House | 5.39% | 50%+ |
| Arab Bank | 5.45% | 50%+ |
| G&C Mutual | 5.49% | 40%+ |
| First Option Credit Union | 5.49% | 40%+ |
Source: RateCity.com.au Note: Fire Services Credit Union loan limited to emergency services professionals and their families in South Australia only.
“RateCity.com.au research director, Sally Tindall said: “This is the fourth time NAB has hiked its lowest new customer variable rate in the last five months in addition to the three standard RBA hikes we’ve had in this time.”
“This means a new customer taking out NAB’s lowest rate loan today will pay 0.35 percentage points more than a customer who took out the exact same loan at the start of the year,” she said.
“The big banks have now hiked new customer variable rates a total of 19 times in the last five months as they quietly try and reverse out of offering discounts to new customers.
“As a result, the average big four lowest variable rate is now 0.81 percentage points more than the lowest variable rates on the market – a gap that’s going to widen if Australia’s largest banks continue to walk away from their previously competitive position in the market,” she said.
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Product database updated 19 Nov, 2024
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