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NAB follows CBA and hikes fixed rates
Australia’s third largest lender, NAB, has followed in CBA’s footsteps and hiked fixed rates for owner-occupiers and investors by up to 1.10 percentage points.
Yesterday, Australia’s biggest bank hiked its fixed rates in all categories by 1.40 percentage points.
NAB and CBA are not hiking fixed rates in isolation. Analysis of the RateCity.com.au database shows over 70 banks have hiked at least one fixed rate in the last month.
NAB FIXED CHANGES: owner-occupiers principal and interest
| Term | Old rate | New rate | Change |
| 1-yr fixed | 3.59% | 4.69% | 1.10% |
| 2-yr fixed | 4.59% | 5.59% | 1.00% |
| 3-yr fixed | 4.99% | 5.79% | 0.80% |
| 4-yr fixed | 5.39% | 6.19% | 0.80% |
| 5-yr fixed | 5.49% | 6.29% | 0.80% |
Source: RateCity.com.au. Note: Rates are for customers on a package loan.
NAB lowest rates – 1 year ago vs today
| Term | Old rate | New rate | Change |
| 1-yr fixed | 2.09% | 4.69% | 2.60% |
| 2-yr fixed | 1.99% | 5.59% | 3.60% |
| 3-yr fixed | 2.08% | 5.79% | 3.71% |
| 4-yr fixed | 2.24% | 6.19% | 3.95% |
| 5-yr fixed | 2.49% | 6.29% | 3.80% |
| Lowest variable | 2.69% | 2.94% | 0.25% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
| Rate type | Lenders that have cut | Lenders that have hiked |
| 1-year fixed | 0 | 73 |
| 2-year fixed | 0 | 72 |
| 3-year fixed | 0 | 67 |
| 4-year fixed | 1 | 38 |
| 5-year-fixed | 1 | 54 |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest
RateCity.com.au research director, Sally Tindall, said: “NAB has pulled the trigger on an extensive round of rate hikes.”
“While the hikes aren’t quite as large as CBA’s, many borrowers who were looking to fix with NAB are now likely to be reconsidering their options on the back of this news,” she said.
“CBA and NAB are not hiking in isolation. ANZ, Macquarie and HSBC have all made sizeable fixed rate hikes in the last fortnight and we expect others will follow. Westpac’s fixed rates are now well below the other big four banks’ rates, however, they’re unlikely to last long.
“The banks are responding to the rising cost of fixed-rate funding, but they’re also factoring in market expectations the cash rate will go beyond the RBA’s suggested neutral cash rate of 2.50 per cent.
“Governor Lowe has said the Board will be considering both a 0.25 percentage point hike and another double hike of 0.50 percentage points at Tuesday’s meeting.
“It’s hard to see the RBA opting for anything less than a double hike at this stage. Governor Lowe has said the RBA is prepared to do what it takes to get inflation back into the target band and hiking rates now will send a message that the RBA is on the case. When you consider these points, how could the RBA do anything less?,” she said.
Lowest big four bank rates for owner-occupiers paying principal and interest
(note: interest-only and investor rates are higher)
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr fixed | 4.99% | 4.09% | 4.69% | 4.69% |
| 2-yr fixed | 5.79% | 4.79% | 5.59% | 5.49% |
| 3-yr fixed | 6.39% | 5.19% | 5.79% | 5.89% |
| 4-yr fixed | 6.59% | 5.29% | 6.19% | 5.99% |
| 5-yr fixed | 6.69% | 5.39% | 6.29% | 6.09% |
| Lowest variable | 2.79% | 2.64% for 2 yrs then 3.04% | 2.94% | 2.79% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
Lowest home loan rates on RateCity.com.au
| Rate type | Lender | Advertised rate |
| 1-yr fixed | First Option Bank | 2.99% |
| 2-yr fixed | Macquarie Credit Union | 3.55% |
| 3-yr fixed | Macquarie Credit Union | 4.02% |
| 4-yr fixed | QBANK | 4.79% |
| 5-yr fixed | IMB Bank | 4.89% |
| Lowest variable | Homestar Finance, Credit Union SA | 2.44% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
Disclaimer
This article is over two years old, last updated on July 1, 2022. 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 18 Nov, 2024
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