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NAB lifts fixed rates: last big four rate under 2% now gone

Laine Gordon avatar
Laine Gordon
- 3 min read
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Australia’s third largest bank, NAB, has today hiked fixed rates for the third time in just over five weeks – closing the door on the last big four rate under 2 per cent.

NAB increased its owner-occupier and investor fixed rates by up to 0.50 per cent, including its 1-year fixed rate, which was previously 1.99 per cent.

NAB hikes for owner-occupiers paying principal and interest

Please contact us for interest only and investor rate changes

LoanOld rateNew rateChangeMonthly repayments – difference

$500K loan

1-year fixed

1.99%

2.49%

0.50%

$127

2-year fixed

2.34%

2.59%

0.25%

$65

3-year fixed

2.79%

3.09%

0.30%

$81

4-year fixed

2.89%

3.29%

0.40%

$109

5-year fixed

3.09%

3.49%

0.40%

$110

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395. Monthly repayments are based on a $500,000, 30-year loan over the fixed rate term.

Previous NAB owner-occupier fixed rate hikes:

Lenders that have moved at least one rate in the last 1 month (3 November to 2 December 2021)

Lenders that have cutLenders that have hiked
Variable487
1yr fixed1534
2yr fixed1356
3yr fixed265
4yr fixed441
5yr fixed657

Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates

RateCity.com.au research director, Sally Tindall, said: “NAB was the last big four bank to hang on to a rate starting with a ‘1’, but the bank has succumbed to funding pressures just like its rivals.”

“The number of fixed rates under 2 per cent is fast disappearing,” she said.

“Six months ago, there were 166 fixed rates starting with a ‘1’, and now there are just 78, and the exodus is far from over.

“Borrowers who had already fixed their loans with NAB will be breathing a sigh of relief at this news, but it will be a very different situation when they come off their fixed rates.

“People looking to re-fix their loan in one- or two-years’ time are likely to be looking at rates starting with a ‘3’,” she said.

Screen Shot 2021-12-02 at 8.22.24 pm

Lowest big four bank owner-occupier home loan rates

CBAWestpacNABANZ
1yr fixed

2.49%

2.24%

2.49%

2.29%

2yr fixed

2.59%

2.24%

2.59%

2.39%

3yr fixed

2.99%

2.59%

3.09%

2.79%

4yr fixed

3.09%

2.89%

3.29%

2.99%

5yr fixed

3.39%

3.09%

3.49%

3.19%

Variable

2.29%

2.19%

2.29%

2.29%

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

Lowest rates on the RateCity.com.au database

LenderAdvertised rate
1yr fixedGreater Bank, Bank of Us

1.59%

2yr fixedBeyond Bank

1.79%

3yr fixedMOVE Bank

1.89%

4yr fixedBankVic, Southern Cross CU,

Credit Union SA

2.39%

5yr fixedBankVic, QBank

2.49%

VariableReduce 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 December 2, 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 02 Nov, 2024

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