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NAB hikes its basic variable rate for new customers
NAB, Australia’s third largest home loan lender, has today increased the rate of its basic variable mortgage by 0.10 percentage points for new customers paying principal and interest.
Existing customers are not impacted.
Today’s change to NAB’s Base Variable Rate
| Loan type | Old rate | New rate | Change %-pts |
| Owner-occupier (P&) | 6.49% | 6.59% | +0.10 |
| Investor (P&I) | 7.01% | 7.11% | +0.10 |
Source: RateCity.com.au. Note: NAB does not have loan-to-value tiers on this loan.
How do the big four banks’ advertised basic variable rates now stack up?
NAB has the highest basic variable rate for new customers with big deposits. However, it has the lowest ongoing variable rate for customers with small deposits.
This is because the bank has hiked its lowest variable rate three times in the last three months, but cut this rate for customers with small deposits on 13 September.
Big four banks’ basic advertised variable rates
| Deposit size | CBA | Westpac | NAB | ANZ |
| Over 40% | 6.34% | 6.09% for 2yrs
then +0.40% | 6.59% | 6.19% |
| 30% - 40% | 6.44% | 6.09% for 2yrs
then +0.40% | 6.59% | 6.24% |
| 20% - 30% | 6.54% | 6.19% for 2yrs
then +0.40% | 6.59% | 6.29% |
| 10% - 20% | 6.89% | 6.49% for 2yrs
then +0.40% | 6.59% | 6.89% |
| 5% - 10% | 7.59% | 6.49% for 2yrs
then +0.40% | 6.59% | 7.29% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply
New customer variable rates still climbing, but the pace is slowing
The big four banks have now collectively increased at least one new customer variable rate on 23 occasions since 1 March 2023, in addition to the standard RBA hikes (see full table at end), however this is the first big bank variable rate increase in over six weeks.
While the big four banks’ advertised variable rates are well in the ‘6’s’ and still on the rise, the lowest variable rates in the market are also creeping north.
The RateCity.com.au database shows:
5 lenders were offering ongoing variable rates under 5.50% in July
1 lender is still offering at rate under 5.50% today.
Research from RateCity.com.au shows over the last month, more lenders have increased variable rates than those that have cut for owner occupiers paying principal and interest.
Cuts vs hikes for owner occupiers paying P&I over the last month
| Rate type | Lenders that have cut | Lenders that have hiked |
| Variable | 13 | 24 |
Source: RateCity.com.au
Lowest ongoing variable rates available on RateCity.com.au database
| Lender | Rate |
| Abal Banking | 5.45% |
| Pacific Mortgage Group | 5.59% |
| RACQ | 5.59% |
| Northern Inland Credit Union | 5.59% |
| BCU Bank | 5.64% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
RateCity.com.au research director, Sally Tindall, said: “NAB is continuing to walk back the new customer discounts that dominated the mortgage market in 2022. This year alone, the bank has increased the rate on its lowest variable loan a total of six times for new customers.”
“The bank has said, repeatedly, it’s willing to accept slower growth in its home loan book and focus its efforts elsewhere,” she said.
“However, if new customers start looking beyond the bank en masse, it may be forced back into the mortgage wars.
“NAB has, however, kept the door open to borrowers with small deposits, offering the lowest ongoing variable rate out of the big four banks to these customers.
“New customer variable increases have notably slowed over the last couple of months, but rates are broadly still creeping up across the market, despite no move from the RBA in the last four meetings.
“The RateCity database shows that in July there were five lenders offering ongoing variable rates under 5.50 per cent. Today there is just one.
“This doesn’t mean borrowers should give up on their refinancing plans. The more people switching lenders, the more likely the banks will be forced to remain competitive.
“Customers need to use this competition, otherwise they risk losing it,” she said.
Variable rate hike from the big four banks since 1 March 2023
Note: these hikes are in addition to RBA increases
| Date | Bank | Loan | Change %-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 |
| 11 August 23 | CBA | Basic variable | up to 0.05 |
| 30 August 23 | NAB | Basic variable | up to 0.15 |
| 13 September 23 | Westpac | Basic variable | 0.10 |
| 27 October 23 | NAB | Basic variable | up to 0.10 |
Source: RateCity.com.au
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Product database updated 19 Nov, 2024
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