NAB last major to increase home loan rates ahead of RBA meeting

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on October 27, 2021
NAB last major to increase home loan rates ahead of RBA meeting

On Wednesday NAB followed CommBank, Westpac, and ANZ in increasing fixed home loan interest rates.

The move comes ahead of today's inflation data from the ABS, which generally weighs heavily on the RBA's monetary policy decision - next held on Tuesday.

NAB's rate increases were largely in-line with increases from the other major banks, focusing on fixed-rate home loans with terms between two and five years.

While a large swathe of home loans had rates changed, some of the more noteworthy ones included:

  • Choice Package Fixed 2 Years: 10 basis point increase to 2.09% p.a. (4.00% p.a. comparison rate*)
  • Choice Package Fixed 5 Years: 20 basis point increase to 2.99% p.a. (3.95% p.a. comparison rate*)
  • Investor Tailored Fixed 3 Years: 10 basis point increase to 2.64% p.a. (4.59% p.a. comparison rate*)
  • Investor Tailored Fixed 5 Years: 15 basis point increase to 3.19% p.a. (4.46% p.a. comparison rate*)

That said, various one year fixed-rate home loans were decreased by between 10 and 15 basis points, similar to what ANZ did last week.

NAB's Choice Package fixed for one year for owner occupiers was reduced by 10 basis points, which brings it back down below the 2% threshold. 

Variable loans get a haircut

NAB has continued building on the emerging theme where fixed loans increase while variable rates decrease.

The major bank decreased its base variable rates for owner occupiers by between 5 and 40 basis points as special offers.

For borrowers up to 80% LVR, the rate was decreased by 40 basis points to 2.29% p.a. (2.33% p.a. comparison rate*).

Borrowers over 80% LVR saw a rate decrease of 5 basis points to 2.99% p.a. (3.03% p.a. comparison rate*).

AMP also cuts variable rates

On Wednesday AMP also cut variable home loan rates for investors borrowing more than $500,000 by up to 40 basis points. 

  • Professional Package P&I 60%: 40 basis point decrease to 2.34% p.a. (2.76% p.a. comparison rate*)
  • Professional Package IO 60%: 30 basis point decrease to 2.79% p.a. (2.87% p.a. comparison rate*)

Investors with smaller deposits or equity, up to 80% LVR, also saw rate decreases by between 35 and 40 basis points.

Investment construction loans also got a haircut for those borrowing more than $500,000:

  • Professional Package 60%: 30 basis point decrease to 2.79% p.a. (2.79% p.a. comparison rate*)
  • Professional Package 80%: 40 basis point decrease to 2.79% p.a. (3.62% p.a. comparison rate*)

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Lender

Variable
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QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

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Variable
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Variable Rate Home Loan – Refinance Only

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Variable
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NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)

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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 July 3, 2022. View disclaimer.


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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