NAB hikes fixed home loan rates

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on March 09, 2022 Fact Checked
NAB hikes fixed home loan rates

For the second time this year, NAB has increased fixed home loan rates by up to 50 basis points.

Wednesday's rate hikes apply to both owner occupier and investment home loans fixed between one and five years.

This marks only the second fixed rate hike of the year for NAB, while ANZ pushed fixed-rates north twice in February alone. 

NAB's Choice Package principal and interest (P&I) and interest-only (IO) loans over five-years saw the greatest increase of 50 basis points. 

For an annual fee of $395, NAB's ‘Choice Package’ provides customers a discount off the ‘indicator’ rate for the life of the loan, while also discounting premiums on various insurance products, and margin loans. 

Noteworthy increases across NAB's fixed home loan portfolio include:

  • Choice Package Tailored Fixed - P&I 5 Years 150k+ 95%: 50 basis point increase to 4.19% p.a. (4.43% p.a. comparison rate*)
  • Choice Package Tailored Fixed - IO 5 Years 150k+ 95%: 30 basis point increase to 4.49% p.a. (4.51% p.a. comparison rate*)
  • Choice Package Investor Tailored Fixed - P&I 5 Years 150k+ 90%: 50 basis point increase to 4.34% p.a. (4.84% p.a. comparison rate*)
  • Choice Package Investor Tailored Fixed - IO 5 Years 150k+ 90%: 50 basis point increase to 4.44% p.a. (4.84% p.a. comparison rate*)
  • Tailored Fixed - P&I 3 Years 95%: 25 basis point increase to 3.69% p.a. (4.43% p.a. comparison rate*)
  • Tailored Fixed - P&I 5 Years 95%: 50 basis point increase to 4.29% p.a. (4.56% p.a. comparison rate*)

NAB owned digital-banks 86 400 and UBank both lifted fixed home loan rates last week by up to 35 basis points.

Recently, ABS data revealed the average loan size for owner-occupier dwellings now sits at a national level of $619,000, marking an increase of $17,000 or 2.8% from December 2021.

The owned occupied five-year Tailored Fixed home loan is 195 basis points (1.95%) higher than it was a year ago.

Using this average home loan size across a 30-year term, 195 basis points' difference results in $665 in extra interest paid per month.

On Tuesday NAB economists forecast an RBA cash rate of 0.75% by end-2022.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of August 11, 2022. View disclaimer.

 




Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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