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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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.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of November 27, 2021. 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 click through onto the web site links.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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