Australia’s third-largest bank, NAB, has increased its fixed mortgage rates for homeowners and investors to 0.51%.
This is the second time that the NAB has raised fixed rates in less than two months, and the fifth time that it has increased at least one fixed rate since the start of the year.
Despite today’s hikes, the NAB still has a rate below 2 percent – that’s a 1-year fixed rate at 1.99 percent.
Today’s NAB Fixed Rate Changes for Homeowners
| Rate type | Old lowest rate | New lowest rate | Switch | Monthly repayments – difference, loan of $ 500,000 |
| 2 years fixed |
2.09% |
2.34% |
+ 0.25% |
$ 64 |
| 3 years fixed |
2.28% |
2.79% |
+ 0.51% |
$ 133 |
| 4 years fixed |
2.59% |
2.89% |
+ 0.30% |
$ 79 |
| 5 years fixed |
2.99% |
3.09% |
+ 0.10% |
$ 27 |
Note: The above rates are for homeowners paying principal and interest on a package with an annual fee of $ 395.
Monthly repayments are based on a $ 500,000 30-year fixed rate loan.
Please contact us for investor and interest changes only.
Lenders who have changed at least one rate in the past month (October 12 to November 11, 2021)
| Old rate | Lenders who cut | Lenders who have increased |
| Variable | 30 | 4 |
| 1 year fixed | 14 | 18 |
| 2 years fixed | 3 | 35 |
| 3 years fixed | 0 | 41 |
| 4 years fixed | 1 | 29 |
| 5 years fixed | 1 | 36 |
Source: RateCity.com.au
RateCity.com.au Research Director Sally Tindall said: “Borrowers who were planning on taking a fixed rate loan from NAB, but had not yet locked in, are likely to be annoyed by this new.”
“The average new borrower who takes a 3-year fixed rate today on a $ 500,000 loan with NAB will pay $ 7,498 more in the first three years of their 30-year loan, compared to clients of the NAB. ‘old rate,’ she said.
“The NAB has kept its one-year fixed rate below 2%, however, it’s hard to imagine it being popular.
“Customers are unlikely to want to commit now, having to renegotiate their mortgage in 12 months in a fixed rate market that is expected to be significantly more expensive.
“The rate hikes are not going to stop there. Banks are expected to continue to increase several times over the next few months as they anticipate expected increases in funding costs.
“A month ago there were 162 fixed rates below 2%, today there are only 111, a decrease of 31%, and we expect that number to continue to drop. .
“By this time next year, customers will be looking to find a rate below 2%,” she said.
The Big Four Banks’ Lowest Rates for Homeowner Home Loans
| ABC | Westpac | NAB | ANZ | |
| 1 year fixed |
2.34% |
1.99% |
1.99% |
1.99% |
| 2 years fixed |
2.34% |
1.99% |
2.34% |
2.09% |
| 3 years fixed |
2.69% |
2.29% |
2.79% |
2.39% |
| 4 years fixed |
2.89% |
2.69% |
2.89% |
2.69% |
| 5 years fixed |
3.09% |
2.99% |
3.09% |
2.89% |
| Variable |
2.29% |
1.99% for 2 years then 2.49% |
2.29% |
2.49% |
Source: RateCity.com.au. Note: CBA and Westpac rates correspond to a loan-to-value ratio of up to 70%.
Lowest rates from RateCity.com.au database
| Lender | Announced price | ||
| 1 year fixed | Big Bank, Bank of Us |
1.59% |
|
| 2 years fixed | Big Bank |
1.59% |
|
| 3 years fixed | Community First Credit Union |
1.79% |
|
| 4 years fixed | Freedom loan |
2.27% |
|
| 5 years fixed | Freedom loan |
2.27% |
|
| Variable | Reduce home loans |
1.77% |
|
Source: RateCity.com.au Note: Rates apply to owner-occupiers who pay principal and interest. Certain LVR and localization requirements apply.
