NAB increases fixed home loans by up to 50 basis points

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on December 02, 2021 Fact Checked
NAB increases fixed home loans by up to 50 basis points

Thursday's increase marks the second time in three weeks NAB has raised its fixed interest rates on home loans.

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. 


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Variable
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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 7, 2022. View disclaimer.



Image by Mukuko Studio via Unsplash



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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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