NAB increases fixed home loan rates

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on July 01, 2022 Fact Checked
NAB increases fixed home loan rates

Following CommBank’s lead, NAB has responded with a 110 basis point increase of its own to fixed home loan rates.

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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Fixed
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Fixed
More details
  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

Fixed Home Loan (Principal and Interest) 1 Year

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
Fixed
More details
  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

Tailored Home Loan Fixed (Principal and Interest) 1 Year

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
Fixed
More details
  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

Fixed Rate Investment Loan (Principal and Interest) 1 Year (LVR > 80%)

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  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

Own Home Loan Fixed (Principal and Interest) 2 Years (LVR 80%-85%)

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  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

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  • Choose to rate lock for 90 days (fee applies)
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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 10, 2022. View disclaimer.


Image by Pavel Danilyuk via Pexels



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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