NAB raises fixed rates

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Australia’s third largest bank, NAB, has now increased its fixed rates to 0.30% for terms of 3 years and more.

This is the second time that the NAB has raised its fixed rates to 3 and 4 years in the past three months.

Despite the hikes, the NAB still has a rate below 2 percent – its two-year fixed rate at 1.99 percent.

NAB rate changes

Rate type Old lowest rate New lowest rate Switch
3 years fixed

2.08%

2.18%

+ 0.10%

4 years fixed

2.24%

2.49%

+ 0.25%

5 years fixed

2.49%

2.79%

+ 0.30%

Note: Rates are for homeowners who pay principal and interest with the NAB Global Loan. The NAB has also increased its base fixed rates for 3, 4 and 5 years.

RateCity.com.au’s research director Sally Tindall said the rate hikes came as no surprise.

“Australia’s two largest cities may still be stranded, but it is widely accepted that this bump in the road is only temporary,” she said.

“Governor Lowe has made it clear that rates will not rise until at least 2024. As a result, many banks are still raising rates three years and above, however, two-year rate cuts have slowed.

“NAB has been careful to keep its two-year fixed rate below 2%. Without this rate, the bank could struggle to keep new customers in what remains an ultra-competitive market.

“These fixed rate hikes will have no impact on the amount of the loan, as the banks base the service tests on the rate of return. However, they remind us that these rates will not stay forever, ”she said.

The lowest homeowner mortgage rates of the big four banks

ABC Westpac * NAB ANZ
1 year fixed

2.09%

1.99%

2.09%

2.04%

2 years fixed

1.99%

1.89%

1.99%

1.94%

3 years fixed

2.19%

1.98%

2.18%

2.04%

4 years fixed

2.29%

2.49%

2.49%

2.49%

5 years fixed

2.99%

2.79%

2.79%

2.69%

Variable

2.69%

1.99% for 2 years then 2.49%

2.69%

2.72%

Source: RateCity.com.au. * Note: Westpac rates are a loan to value ratio of up to 70%.

The lowest rates on the RateCity.com.au database

Lender Rate
1 year fixed Big Bank

1.69%

2 years fixed St George, Bank of Melbourne, Grand Bank

1.79%

3 years fixed UBank, 86,400

1.85%

4 years fixed Teachers’ mutual

2.14%

5 years fixed Lend freedom

2.27%

Variable Reduce home loans

1.77%

Source: RateCity.com.au Note: Rates are for homeowners paying principal and interest. Certain LVR requirements apply.


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