NAB increases fixed home loans by up to 50 basis points

The fixed rate rise continues as many lenders continue hiking fixed interest rates while cutting variable interest rates on mortgages.

NAB's biggest increases this time around were to various investment home loan products, paying interest-only 'in arrears', increased by up to 50 basis points.

'In arrears' interest payments are made at the end of the month, while 'in advance' payments are made at the start of the month - for investors this could pose a few advantages at tax time.

Other noteworthy increases include:

• Choice Package Tailored Fixed - P&I 3 Years: Rose 30 basis points to 3.09% p.a. (comparison rate 4.11% p.a.) 
• Choice Package Investor - P&I 3 Years: Rose 40 basis points to 3.39% p.a (comparison rate 4.51% p.a.)
• Tailored Fixed - P&I 3 Years: Rose 30 basis points to 3.19% p.a. (comparison rate 4.30% p.a.)
• Tailored Fixed Investor - P&I 3 Years: Rose 40 basis points to 3.49% p.a (comparison rate 4.82% p.a.)

These increased rates apply to new lending with a maximum loan-to-value ratio of 95% for owner occupiers and 90% for investors.

At one stage, NAB's Choice Package home loans for owner occupiers fixed for three and four years were under the 2% threshold.

These rises follow NAB hikes in September and November.

NAB isn't the only bank to hike interest rates recently, as CommBank, Suncorp, and ME Bank have increased fixed interest rates by up to 62 basis points last month. 

Advertisement

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.

Loan purpose

Refinancing

Loan amount

Update resultsUpdate

Compare

Filters

Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Bare Home Loan (Basic OO P&I <90%)	5.94% p.a.	5.98% p.a.	$2,978	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.89% p.a.	5.80% p.a.	$2,962	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	No application or ongoing fees. Annual rate discount Unlimited redraws & additional repayments. LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	Go to site	Compare	Promoted	Disclosure
Regional Australia Bank	Regional Australia Bank Home Loan Fixed (Owner Occupier, Principal and Interest, max lvr 60%) (3 years)	5.99% p.a.	6.02% p.a.	$2,995	Principal & Interest	Fixed			$0	$0	60%				Owner Occupier Fixed 3 Years Principal & Interest 40% Min Deposit Redraw More details	Competitive rates to help you save A Dedicated Relationship Manager Certainty of repayments with a fixed rate term	Go to site	Compare	Promoted	Disclosure
Homestar	Homestar Star Nova LVR <70% (Owner Occupied, Principal and Interest)	5.93% p.a.	5.93% p.a.	$2,975	Principal & Interest	Variable			$0	$395	70%				Owner Occupier Variable Principal & Interest 30% Min Deposit Redraw More details		Go to site	Compare		Disclosure
Reduce Home Loans	Reduce Home Loans EconoME Home Loan (Owner Occupier, Principal & Interest, LVR 60%)	5.99% p.a.	6.01% p.a.	$2,995	Principal & Interest	Variable			$0	$150	60%				$3000 Cashback T&Cs apply Owner Occupier Variable Principal & Interest 40% Min Deposit Redraw More details		Go to site	Compare		Disclosure

More home loans