RateCity.com.au
powering smart financial decisions

Fixed rates keep climbing: NAB hikes by up to 0.51%

Fixed rates keep climbing: NAB hikes by up to 0.51%

Australia’s third largest bank, NAB, has hiked its fixed home loan rates for owner-occupiers and investors by up to 0.51 per cent.

This is the second time NAB has lifted fixed rates in less than two months, and the fifth time it has hiked at least one fixed rate since the start of the year.

Despite today’s hikes, NAB still has one rate under 2 per cent – it’s 1-year fixed rate at 1.99 per cent.

Today’s NAB fixed rate changes for owner-occupiers

Rate typeOld lowest rateNew lowest rateChangeMthly repayments – difference, $500K loan
2-year fixed

2.09%

2.34%

+0.25%

$64

3-year fixed

2.28%

2.79%

+0.51%

$133

4-year fixed

2.59%

2.89%

+0.30%

$79

5-year fixed

2.99%

3.09%

+0.10%

$27

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395.

Monthly repayments are based on a $500K, 30-year loan over the fixed rate term.

Please contact us for investor and interest only changes.

Lenders that have moved at least one rate in the last 1 month (12 Oct to 11 Nov 2021)

Old rateLenders that have cutLenders that have hiked
Variable 304
1 yr fixed1418
2 yr fixed335
3 yr fixed041
4 yr fixed129
5 yr fixed136

Source: RateCity.com.au

RateCity.com.au research director, Sally Tindall, said: “Borrowers who were planning to take out a fixed-rate loan with NAB, but hadn’t yet locked in, are likely to be annoyed at this news.”

“The average new borrower taking out a 3-year fixed rate on a $500,000 loan with NAB today will be paying $7,498 extra in the first three years of their 30-year loan, compared to customers on the old rate,” she said.

“NAB has kept its one-year fixed rate under 2 percent, however, it’s hard to see it being popular.

“Customers are unlikely to want to lock in now, only to have to renegotiate their home loan in 12 months’ time in a fixed-rate market that’s expected to be significantly more expensive.

“The rate hikes aren’t going to stop here. Banks are likely to keep hiking multiple times over the next few months as they price in expected rises in the cost of funding.

“One month ago, there were 162 fixed rates under 2 per cent, today there are just 111 – a drop of 31 per cent, and we expect this number to keep falling.

“By this time next year customers will be scratching around to find a rate under 2 per cent,” she said.

Lowest big four bank owner-occupier home loan rates

CBAWestpacNAB ANZ
1 yr fixed

2.34%

1.99%

1.99% 

1.99%

2 yr fixed

2.34%

1.99%

2.34%

2.09%

3 yr fixed

2.69%

2.29%

2.79%

2.39%

4 yr fixed

2.89%

2.69%

2.89%

2.69%

5 yr fixed

3.09%

2.99%

3.09%

2.89%

Variable

2.29%

1.99% for 2yrs then 2.49%

2.29%

2.49%

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

Lowest rates on the RateCity.com.au database

LenderAdvertised rate
1 yr fixedGreater Bank, Bank of Us

1.59%

2 yr fixedGreater Bank

1.59%

3 yr fixedCommunity First Credit Union

1.79%

4 yr fixedFreedom Lend

2.27%

5 yr fixedFreedom Lend

2.27%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR and location requirements apply. 

Did you find this helpful? Why not share this news?

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Advertisement

RateCity

Related news

More news? Read more here