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Latest NAB major to hike mortgage rates ahead of RBA move

On Wednesday, the NAB followed CommBank, Westpac and ANZ in raising fixed interest rates on home loans.

The move precedes today’s ABS inflation data, which typically weighs heavily on the RBA’s monetary policy decision – which will take place next Tuesday.

NAB’s rate increases have been largely in line with increases by other major banks, focusing on fixed-rate home loans with terms of between two and five years.

While a large portion of home loans have had rates changed, some of the most notable are as follows:

  • Fixed Choice 2 Year Package: Increase of 10 basis points to 2.09% per annum (comparison rate of 4.00% per annum *)
  • Fixed Choice Package 5 Years: Increase of 20 basis points to 2.99% pa (comparison rate of 3.95% pa *)
  • Custom investor fixed 3 years: Increase of 10 basis points to 2.64% per year (comparison rate of 4.59% per year *)
  • Custom investor fixed 5 years: Increase of 15 basis points to 3.19% per year (comparison rate of 4.46% per year *)

That said, various one-year fixed rate home loans have been cut by 10 to 15 basis points, similar to what ANZ did last week.

The NAB’s Choice Package set at one year for owner-occupiers has been reduced by 10 basis points, bringing it below the 2% threshold.

Variable loans get a discount

NAB continued to build on the emerging theme where fixed loans increase while variable rates decrease.

The big bank cut its base variable rates for homeowners from 5 to 40 basis points as part of special offers.

For borrowers up to 80% LVR, the rate has been reduced by 40 basis points to 2.29% per annum (comparison rate of 2.33% per annum *).

Borrowers over 80% of LVR saw their rate drop by 5 basis points to 2.99% per annum (comparison rate of 3.03% per annum *).

AMP also cuts variable rates

On Wednesday, the AMP also cut variable rates on home loans for investors borrowing over $ 500,000 by up to 40 basis points.

  • 60% P&I Professional Package: 40 basis points decrease to 2.34% per year (comparison rate of 2.76% per year *)
  • Professional IO 60% package: Decrease of 30 basis points to 2.79% pa (comparison rate of 2.87% pa *)

Investors with smaller deposits or equity, up to 80% LVR, also saw their rates drop by 35 to 40 basis points.

Investment loans for construction have also been discounted for those who borrow more than $ 500,000:

  • 60% Professional Package: Decrease by 30 basis points to 2.79% per year (comparison rate of 2.79% per year *)
  • Professional package 80%: 40 basis points decrease to 2.79% per year (comparison rate of 3.62% per year *)

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Buying a home or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.

Lender

Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
LIMITED TIME OFFER

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details
100% FULL ACCOUNTNO APPLICATION FEES OR CURRENT FEES

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing costs
  • 100% clearing account
  • Additional refunds + reprint services

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments
Variable More details
NO INITIAL OR ONGOING FEES

Owner Occupant Accelerate – Celebrate (LVR
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching
  • No upfront or ongoing costs




Disclaimer

The entire market was not taken into account in the selection of the above products. On the contrary, a small part of the market has been envisaged. Products from some vendors may not be available in all states. To be considered, the product and the price must be clearly published on the website of the supplier of the product. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, the Savings Media Group is associated with the Firstmac Group. To learn more about how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.


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Harrison astbury


Harrison is associate editor of Savings.com.au. Prior to joining Savings in January 2020, he worked for some of Australia’s biggest comparison sites and media organizations. With a keen interest in economics, housing policy and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.







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