Australia’s third largest bank, NAB, has today hiked fixed rates by up to 0.30 per cent for terms of 3 years and above.
This is the second time NAB has hiked its 3- and 4-year fixed rates in the last three months.
Despite the hikes, NAB still has one rate under 2 per cent – its two-year fixed rate at 1.99 per cent.
NAB rate changes
|Rate type||Old lowest rate||New lowest rate||Change|
Note: Rates are for owner-occupiers paying principal and interest with NAB’s package loan. NAB also hiked its basic fixed rates for 3, 4 and 5 years.
RateCity.com.au research director, Sally Tindall, said the rate hikes came as no surprise.
“Australia’s two largest cities might still be in lockdown but there is widespread agreement this bump in the road is only temporary,” she said.
“Governor Lowe has made it clear rates will not rise until at least 2024. As a result, many banks are still hiking rates of three years and over, however, cuts to two-year rates have slowed.
“NAB has been careful to keep its two-year fixed rate under 2 per cent. Without this rate the bank could struggle to keep new customers coming in the door in what remains an ultra-competitive market.
“These fixed rate hikes won’t impact how much someone can borrow, as banks base serviceability tests on the revert rate. However, they do serve as a reminder these rates aren’t going to stick around forever,” she said.
Lowest big four bank owner-occupier home loan rates
|1 yr fixed|
|2 yr fixed|
|3 yr fixed|
|4 yr fixed|
|5 yr fixed|
1.99% for 2 yrs then 2.49%
Source: RateCity.com.au. *Note: Westpac's rates are for a loan to value ratio of up to 70%.
Lowest rates on the RateCity.com.au database
|1 yr fixed||Greater Bank|
|2 yr fixed||St George, Bank of Melbourne, Greater Bank|
|3 yr fixed||UBank, 86 400|
|4 yr fixed||Teachers Mutual|
|5 yr fixed||Freedom Lend|
|Variable||Reduce Home Loans|
Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.