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NAB the last of the big four banks to hike fixed rates

NAB the last of the big four banks to hike fixed rates

Australia’s third largest bank, NAB, has made sweeping changes to its home loan rates – the majority of which are hikes. 

This move means all four big banks have increased a number of fixed rates within two weeks.

However, NAB has also cut its base variable and 1-year fixed rates today, bringing them in line with Australia’s largest bank, CBA.

NAB fixed rate changes: owner occupiers

LoanOld rateNew rateChange
1-year fixed

2.09%

1.99%

-0.10%

2-year fixed

1.99%

2.09%

+0.10%

3-year fixed

2.18%

2.28%

+0.10%

4-year fixed

2.49%

2.59%

+0.10%

5-year fixed

2.79%

2.99%

+0.20%

Note: Above rates are for owner-occupier paying principal and interest on a package rate with an annual fee of $395.

NAB variable rate changes: owner-occupiers

NAB has cut its lowest variable rate by 0.40 per cent to 2.29 per cent today, for owner-occupiers paying principal and interest. 

LoanOld rateNew rateChange
Base variable (up to 80% LVR)

2.69%

2.29%

-0.40%

Lenders who have moved at least one rate in the last month

Lenders that have cutLenders that have hiked
Variable252
1 year Fixed103
2 year Fixed412
3 year Fixed222
4 year Fixed018
5 year Fixed018

Source: RateCity.com.au. Note: date range is 28/09/21 to 27/10/21

RateCity.com.au research director, Sally Tindall, said: “NAB is the last of the big four banks to reset its mortgage rates within two weeks.”

“NAB’s rate changes are uncannily similar to CBA’s, with the bank hiking the majority of its fixed rates but sharpening its base variable and 1-year rate,” she said.

“With COVID restrictions easing and vaccination rates steadily rising, the banks believe the economy will rebound quickly and are factoring in increases to the cost of funding.

“While fixed rates are on the rise, the banks are moving in unison, because the last thing they want is to lose business to a rival.

“The big four banks have strategically made their 1-year fixed rates start with a ‘1’, which might help with marketing, but it won’t give customers looking for protection against rising rates much certainty.

“NAB has been forced to slash its base variable rate for owner-occupiers down to a competitive 2.29 per cent to keep up with CBA and Westpac, who had both previously sharpened these rates.

“ANZ’s base variable rate is now sticking out like a sore thumb at an inflated 2.72 per cent.

“While banks are largely hiking fixed rates, there is still plenty of competition across the market with 145 fixed rates under 2 per cent, but these aren’t all likely to hang around in 2022,” she said.

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

1.99%

1.99%

1.99% 

1.99%

2 yr fixed

2.09%

1.99%

2.09%

2.09%

3 yr fixed

2.29%

2.08%

2.28%

2.39%

4 yr fixed

2.39%

2.59%

2.59%

2.69%

5 yr fixed

2.99%

2.89%

2.99%

2.89%

Variable

2.29%

1.99% for 2yrs then 2.49%

2.29%

2.72%

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
1 yr fixedGreater Bank, Bank of Us

1.59%

2 yr fixedGreater Bank

1.59%

3 yr fixedCommunity First Credit Union

1.79%

4 yr fixedFreedom Lend

2.27%

5 yr fixedFreedom Lend

2.27%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR and location requirements apply. 

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

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