NAB increases fixed mortgage rates again

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on September 15, 2021
NAB increases fixed mortgage rates again

On Wednesday NAB increased a handful of fixed rate loans for owner occupiers by up to 30 basis points.

The changes include packaged and non-packaged home loans for owner occupiers, paying principal & interest (P&I):

  • Tailored Fixed 3 Years: Up 10 basis points to 2.28% p.a. (4.07% p.a. comparison rate*)
  • Tailored Fixed 4 Years: Up 25 basis points to 2.59% p.a. (4.01% p.a. comparison rate*)
  • Tailored Fixed 5 Years: Up 30 basis points to 2.89% p.a. (3.99% p.a. comparison rate*)
  • Choice Package 3 Years: Up 10 basis points to 2.18% p.a. (3.88% p.a. comparison rate*)
  • Choice Package 4 Years: Up 25 basis points to 2.49% p.a. (3.85% p.a. comparison rate*)
  • Choice Package 5 Years: Up 30 basis points to 2.79% p.a. (3.87% p.a. comparison rate*)

These rates apply to new lending with a maximum loan-to-value ratio of 95%. 

This marks at least the third time in 2021 NAB has increased fixed mortgage rates, after it did so back in May and June.

Previously, the three and four-year packaged loans were some of the first of the big four banks' to be cut below the 2% threshold. 

Experts have said this is because of a hangover from the Reserve Bank's Term Funding Facility, with 'normal' funding expected to return in the next few months.

This also comes after the prudential regulator mandated banks cut their reliance on the 'Committed Liquidity Facility' (CLF) by the end of 2022.

The CLF is a Reserve Bank-led facility that provides funds in periods of liquidity stress.

NAB reportedly has $31 billion in 'fallback' funds in the CLF.


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Lender

Variable
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NSW/VIC/SA METRO & INNER REGIONAL AREAS

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Variable
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Variable
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NO ONGOING FEESFREE REDRAW FACILITY
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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 June 25, 2022. View disclaimer.


Photo by Michael Longmire on Unsplash

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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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