NAB is the last of the four major banks to raise fixed rates
Australia’s third largest bank, NAB, has changed its home loan interest rates widely – most of which are hikes.
This move means that all four major banks have raised a number of fixed rates within two weeks.
However, today NAB also cut its base rates on floating and annual fixed rates to bring them in line with Australia’s largest bank, CBA.
NAB fixed price changes: owner-occupiers
| loan | Old tariff | New tariff | Change |
| Fixed for 1 year |
2.09% |
1.99% |
-0.10% |
| 2 years fixed |
1.99% |
2.09% |
+ 0.10% |
| 3 years fixed |
2.18% |
2.28% |
+ 0.10% |
| 4 years fixed |
2.49% |
2.59% |
+ 0.10% |
| 5 years fixed |
2.79% |
2.99% |
+ 0.20% |
Note: Above prices are for owner-occupiers who pay principal and interest for a flat rate with an annual fee of $ 395.
NAB variable interest rate changes: owner-occupiers
The NAB has cut its lowest floating rate for owner-occupiers who pay principal and interest by 0.40 percent to 2.29 percent today.
| loan | Old tariff | New tariff | Change |
| Basic variable (up to 80% LVR) |
2.69% |
2.29% |
-0.40% |
Lenders who have moved at least one installment in the last month
| Lenders Who Cut | Lenders who have hiked | |
| variable | 25th | 2 |
| Fixed for 1 year | 10 | 3 |
| Fixed 2 years | 4th | 12th |
| Fixed 3 years | 2 | 22nd |
| Fixed 4 years | 0 | 18th |
| Fixed for 5 years | 0 | 18th |
Source: RateCity.com.au. Note: Date range is 9/28/21 to 10/27/21
Sally Tindall, Research Director at RateCity.com.au, said, “NAB will be the last of the four major banks to reset mortgage rates in two weeks.”
“NAB’s rate changes are eerily similar to those of the CBA, with the bank raising most of its fixed rates but tightening its base variable and 1-year rate,” she said.
“With COVID restrictions easing and vaccination rates soaring, banks believe the economy will recover quickly and are considering rising funding costs.
“As fixed rates rise, banks move together because the last thing they want is to lose business to a competitor.
“The big four banks have strategically started their 1-year fixed rates with a ‘1’, which could help with marketing, but doesn’t give customers who are looking for protection against rising interest rates much reassurance.
“NAB was forced to cut its floating owner-occupier rate to a competitive 2.29 percent to keep up with CBA and Westpac, both of which had previously raised those rates.
“The variable base rate from ANZ now stands out like a sore thumb with an inflated 2.72 percent.
“While banks are largely hike fixed rates, there is still a lot of competition in the market with 145 fixed rates below 2 percent, but these are unlikely to all hang around in 2022,” she said.
Lowest mortgage rates for owner-occupiers from the big four banks
| CBA | Westpac | SNAP | ANZ | |
| Fixed for 1 year |
1.99% |
1.99% |
1.99% |
1.99% |
| Fixed 2 years |
2.09% |
1.99% |
2.09% |
2.09% |
| Fixed 3 years |
2.29% |
2.08% |
2.28% |
2.39% |
| Fixed 4 years |
2.39% |
2.59% |
2.59% |
2.69% |
| Fixed for 5 years |
2.99% |
2.89% |
2.99% |
2.89% |
| variable |
2.29% |
1.99% for 2 years, then 2.49% |
2.29% |
2.72% |
Source: RateCity.com.au. Note: CBA and Westpac rates apply to a loan-to-value ratio of up to 70%.
Lowest prices in the RateCity.com.au database
| Lender | Displayed price | |
| Fixed for 1 year | Greater Bank, Bank of Us |
1.59% |
| Fixed 2 years | Major bank |
1.59% |
| Fixed 3 years | Community First Credit Union |
1.79% |
| Fixed 4 years | Liberty Loan |
2.27% |
| Fixed for 5 years | Liberty Loan |
2.27% |
| variable | Reduce home loans |
1.77% |
Source: RateCity.com.au Note: The prices apply to owner-occupiers who pay principal and interest. Some LVR and location requirements apply.