The decision from NAB comes after Australia’s largest bank lifted fixed home loan rates by 140 basis points on Thursday.

The increase from NAB means some fixed rates across their portfolio now begin with a 6, with the figure of 7% looming large in wake of future rate increases.

AMP Chief Economist Shane Oliver said rising fixed rates along with a host of other factors are having a cooling effect on house prices.

“We expect national average property prices to have a top to bottom fall of 15 to 20% over the next 18 months reflecting the combination of poor affordability, rising fixed mortgage rates and further rate hikes from the RBA pushing up variable rates…” Mr Oliver said.

Key changes to NAB’s fixed rate home loan portfolio for new owner occupiers with 95% loan-to-value ratio include:

  • Tailored Fixed P&I 1 Year: 110 basis point increase to 4.79% p.a. (5.39% p.a. comparison rate*)
  • Tailored Fixed P&I 3 Years: 80 basis point increase to 5.89% p.a. (5.57% p.a. comparison rate*)
  • Tailored Fixed IO 1 Year: 30 basis point increase to 5.29% p.a. (5.58% p.a. comparison rate*)
  • Tailored Fixed IO 3 Years: 75 basis point increase to 6.19% p.a. (5.72% p.a. comparison rate*)
  • Choice Package Tailored Fixed - P&I 2 Years 150k+: 100 basis point increase to 5.59% p.a. (5.23% p.a. comparison rate*)
  • Choice Package Tailored Fixed - P&I 4 Years 150k+: 80 basis point increase to 6.19% p.a. (5.60% p.a. comparison rate*)

For investors with 90% loan-to-value ratio, key changes include:

  • Investment Tailored Fixed P&I 1 Year: 90 basis point increase to 5.09% p.a. (5.92% p.a. comparison rate*)
  • Investment Tailored Fixed P&I 3 Years: 80 basis point increase to 6.09% p.a. (6.06% p.a. comparison rate*)
  • Investment Tailored Fixed IO 1 Year: 90 basis point increase to 5.19% p.a. (6.02% p.a. comparison rate*)
  • Investment Tailored Fixed IO 3 Years: 70 basis point increase to 6.09% p.a. (6.09% p.a. comparison rate*)
  • Choice Package Investment Tailored Fixed - P&I 2 Years 150k+: 65 basis point increase to 5.49% p.a. (5.69% p.a. comparison rate*)
  • Choice Package Investment Tailored Fixed - P&I 4 Years 150k+: 70 basis point increase to 6.19% p.a. (5.98% p.a. comparison rate*)

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Lender

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Illawarra Credit Union – The Works Fixed (Principal and Interest) 2 Years

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    HSBC – Package Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR < 60%)

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      Up – Up Home Fixed 3 Years (Principal & Interest) (LVR ≤ 90)

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        RACQ Bank – Fixed Rate Home Loan (QLD only) (Principal and Interest) 3 Years (LVR 60%-70%)

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          MyState Bank – Fixed Home Loan (Principal and Interest) 2 Years (LVR ≤ 70%)

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            Greater Bank – Great Rate Fixed Home Loan (NSW, ACT & QLD only) 4 Years (New Customer)

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              • $0 application Fee
              • Estimate your borrowing power in as little as one minute
              • Safeguard against possible interest rate rises and fix at a great rate now

              Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

              • $0 application Fee
              • Estimate your borrowing power in as little as one minute
              • Safeguard against possible interest rate rises and fix at a great rate now
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              Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

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                IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

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                  Qudos Bank – Fixed Rate Home Loan (Owner Occupied) (Principal and Interest) 2 Years (LVR < 80%)

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                    Horizon Bank – Fixed Rate Home Loan 5 Years (LVR < 70%)

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                      Bank Australia – Clean Energy Home Loan Package - Eco Plus Fixed 3 Years (Principal & Interest) (LVR < 90%)

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                        Arab Bank Australia – Fixed Rate Investment Loan 2 Years (LVR <60)

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                          ING – Fixed Rate Home Loan 2 Years (LVR < 80%)

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                            Summerland Bank – Fixed Rate Investment Loan (New Customer) 2 Years (LVR < 60%)

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                              BCU Bank – Fixed Home Loan (Interest Only) 4 Years

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                                ANZ – Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR > 80%)

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                                  NAB – Tailored Home Loan Fixed (Principal and Interest) 2 Year (LVR < 70%)

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                                    Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

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                                      Commonwealth Bank – Wealth Package Fixed Rate Home Loan (Principal and Interest) 5 Years

                                        Important Information and Comparison Rate Warning

                                        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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 February 28, 2024. View disclaimer.

                                        Image by Pavel Danilyuk via Pexels





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