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Fixed rates keep climbing: NAB hikes by up to 0.51%
Australia’s third largest bank, NAB, has hiked its fixed home loan rates for owner-occupiers and investors by up to 0.51 per cent.
This is the second time NAB has lifted fixed rates in less than two months, and the fifth time it has hiked at least one fixed rate since the start of the year.
Despite today’s hikes, NAB still has one rate under 2 per cent – it’s 1-year fixed rate at 1.99 per cent.
Today’s NAB fixed rate changes for owner-occupiers
| Rate type | Old lowest rate | New lowest rate | Change | Mthly repayments – difference, $500K loan |
| 2-year fixed | 2.09% | 2.34% | +0.25% | $64 |
| 3-year fixed | 2.28% | 2.79% | +0.51% | $133 |
| 4-year fixed | 2.59% | 2.89% | +0.30% | $79 |
| 5-year fixed | 2.99% | 3.09% | +0.10% | $27 |
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 $500K, 30-year loan over the fixed rate term.
Please contact us for investor and interest only changes.
Lenders that have moved at least one rate in the last 1 month (12 Oct to 11 Nov 2021)
| Old rate | Lenders that have cut | Lenders that have hiked |
| Variable | 30 | 4 |
| 1 yr fixed | 14 | 18 |
| 2 yr fixed | 3 | 35 |
| 3 yr fixed | 0 | 41 |
| 4 yr fixed | 1 | 29 |
| 5 yr fixed | 1 | 36 |
Source: RateCity.com.au
RateCity.com.au research director, Sally Tindall, said: “Borrowers who were planning to take out a fixed-rate loan with NAB, but hadn’t yet locked in, are likely to be annoyed at this news.”
“The average new borrower taking out a 3-year fixed rate on a $500,000 loan with NAB today will be paying $7,498 extra in the first three years of their 30-year loan, compared to customers on the old rate,” she said.
“NAB has kept its one-year fixed rate under 2 percent, however, it’s hard to see it being popular.
“Customers are unlikely to want to lock in now, only to have to renegotiate their home loan in 12 months’ time in a fixed-rate market that’s expected to be significantly more expensive.
“The rate hikes aren’t going to stop here. Banks are likely to keep hiking multiple times over the next few months as they price in expected rises in the cost of funding.
“One month ago, there were 162 fixed rates under 2 per cent, today there are just 111 – a drop of 31 per cent, and we expect this number to keep falling.
“By this time next year customers will be scratching around to find a rate under 2 per cent,” she said.
Lowest big four bank owner-occupier home loan rates
| CBA | Westpac | NAB | ANZ | |
| 1 yr fixed | 2.34% | 1.99% | 1.99% | 1.99% |
| 2 yr fixed | 2.34% | 1.99% | 2.34% | 2.09% |
| 3 yr fixed | 2.69% | 2.29% | 2.79% | 2.39% |
| 4 yr fixed | 2.89% | 2.69% | 2.89% | 2.69% |
| 5 yr fixed | 3.09% | 2.99% | 3.09% | 2.89% |
| Variable | 2.29% | 1.99% for 2yrs then 2.49% | 2.29% | 2.49% |
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
| Lender | Advertised rate | ||
| 1 yr fixed | Greater Bank, Bank of Us | 1.59% | |
| 2 yr fixed | Greater Bank | 1.59% | |
| 3 yr fixed | Community First Credit Union | 1.79% | |
| 4 yr fixed | Freedom Lend | 2.27% | |
| 5 yr fixed | Freedom Lend | 2.27% | |
| Variable | Reduce Home Loans | 1.77% | |
Disclaimer
This article is over two years old, last updated on November 11, 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 17 Nov, 2024
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