NAB lifts fixed home loan rates for second time in three weeks
- NAB has increased fixed home loans rates by up to 32 basis points.
- The increase applies across NAB's Tailored Fixed and Investment Tailored Fixed products.
- The move comes a week before the bank's 25bp variable mortgage hike takes effect on 9 October.
NAB is the first of the big four banks to tinker its fixed mortgage products after the Reserve Bank's September meeting which saw the Board unanimously lift the cash rate to 4.60%.
The bank has already announced it will pass on the full 25 basis point hike to its variable-rate home loan customers starting 9 October.
CBA, Westpac and ANZ also made the same announcement.
Ahead of those changes, NAB upped rates across its Tailored Fixed and Investment Tailored Fixed products by up to 32 basis points.
The latest increase follows an earlier rise of up to 15 basis points applied to the same products just two weeks ago.
Here's the latest interest rates for NAB's owner occupier fixed mortgages for borrowers paying principal and interest (P&I).
Fixed term | LVR 80% and below New rate (Comparison rate*) | LVR More than 80% New rate (Comparison rate*) |
1 year | 6.79% p.a. (7.08% p.a.*) | 6.89% p.a. (7.10% p.a.*) |
2 years | 6.81% p.a. (7.08% p.a.*) | 6.91% p.a. (7.10% p.a.*) |
3 years | 6.92% p.a. (7.09% p.a.*) | 7.02% p.a. (7.12% p.a.*) |
4 years | 6.92% p.a. (7.09% p.a.*) | 7.02% p.a. (7.13% p.a.*) |
5 years | 6.94% p.a. (7.09% p.a.*) | 7.04% p.a. (7.14% p.a.*) |
Meanwhile, investors with loan-to-value ratios (LVR) of up to 80% can lock in 6.84% p.a. (comparison rate 7.37% p.a.) for one year, following Friday's adjustments.
On two-year terms, the rate is currently 6.89% p.a. (comparison rate 7.33% p.a.).
Mortgage holders facing higher repayments
NAB's latest fixed-rate increase adds to mounting pressure on borrowers already preparing for higher mortgage repayments following the RBA's latest rate rise.
See also: Which lenders are passing on RBA's September rate hike
For borrowers with a $500,000 mortgage, the rate hike would add roughly $70-$80 to their minimum monthly repayments.
In the bank's rate announcement, NAB personal banking group executive Ana Marinkovic encouraged customers facing hardship to reach out early.
"Some customers may be concerned about the impact of higher repayments, particularly as household budgets remain under pressure," Ms Marinkovic said.
"Our focus is on helping customers understand what has changed and where they can turn for support if they need it."
The latest increases in fixed mortgage products suggest funding costs and expectations for a higher-for-longer rate environment continue to influence pricing decisions across the banking sector.
Higher rates add pressure on falling housing market
Australia's national dwelling values continue to slide, with the latest Cotality data revealing a 1.1% monthly decline in September.
This marks the sixth consecutive month that home prices have fallen, bringing dwelling values 5.2% below their March peak.
Former hot market Brisbane led the monthly falls among capital cities, down 1.5%, followed by Sydney's 1.4% decline.
Adelaide and Perth also posted price falls of more than 1%.
The prospect of higher rates is expected to remain a key headwind for the property market, with borrowing costs at their highest level in 15 years.
"With household debt at high levels, borrowers are far more sensitive to interest rates compared with almost 15 years ago when interest rates were previously this high," Cotality research director Tim Lawless noted.
"Borrowers are not only facing higher mortgage costs, but also an extended period of elevated living expenses and negative real income growth."
With the RBA Board's "hawkish hike" and latest CPI data revealing inflation bounced back to 4%, some economists are tipping a follow-up rate hike in November.
See also: Another RBA rate hike could just be weeks away
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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 | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| ||||||||||||
6.23% p.a. | 6.23% p.a. | $3,072 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
