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Fixed rates keep climbing with NAB hiking by up to 0.90%

Fixed rates keep climbing with NAB hiking by up to 0.90%

NAB has today followed big four bank rival, Westpac, by hiking fixed home loan rates for owner-occupiers and investors.

The lowest fixed rate on offer from Australia’s third largest lender is now 3.59 per cent for one year, an increase of 0.60 percentage points. The biggest hike was 0.90 percentage points for investors fixing for 1 year.

Just yesterday, Westpac hiked its fixed rates by up to 0.80 percentage points.

As a result of today’s changes, CBA is the only big four bank still offering a fixed rate starting with a ‘2’, but that’s unlikely to hang around.

NAB owner-occupier principal & interest home loan rate changes

contact us for interest only and investor changes

Rate typeOld rateNew rateChange
1-yr fixed

2.99%

3.59%

0.60%

2-yr fixed

3.99%

4.59%

0.60%

3-yr fixed

4.49%

4.99%

0.50%

4-yr fixed

4.79%

5.39%

0.60%

5-yr fixed

4.99%

5.49%

0.50%

Note: Above rates are for owner-occupiers paying principal and interest on a package rate. LVR requirements apply.

Analysis of the RateCity.com.au database shows:

  • CBA is now the only big four bank still offering a fixed rate under 3 per cent.
  • The big four bank average lowest 3-year fixed rate has risen by 2.55 percentage points in the past 12 months.
  • The big four bank’s average lowest 3-year fixed for rate is now 2.25 percentage points higher than the big four banks’ average lowest variable rate.

22.05.27 big four fixed rate graph

RateCity.com.au research director, Sally Tindall, said: “The fixed rate hikes have picked up once again as the banks move to factor in inflationary pressures across the globe.”

“NAB’s fixed rates have now more doubled from their pandemic lows, with the exception of its 1-year rates,” she said.

“As of today, the majority of NAB’s owner-occupier and investor fixed rates now start with a ‘5’. That’s enough to turn off even the most avid fixer.

“CBA is now the only big four bank still offering a fixed rate starting with a ‘2’, but this is unlikely to see out the fortnight.

“While the big banks have turned their back on low fixed rates, people wedded to the idea of locking in a rate still have options. There are some competitive rates left for anyone determined to fix, although they’re getting harder to find by the day.

“Fixed rates have risen, in some cases, by over 2.5 percentage points in the last 12 months. However, with the RBA now taking action we could reach the peak in coming months,” she said.

Lowest big four bank rates for owner-occupiers paying principal and interest

(note: interest-only and investor rates are higher)

Rate typeCBAWestpacNABANZ
1-yr fixed

2.99%

3.59%

3.59%

3.29%

2-yr fixed

3.79%

4.29%

4.59%

3.99%

3-yr fixed

4.19%

4.69%

4.99%

4.39%

4-yr fixed

4.39%

4.79%

5.39%

4.69%

5-yr fixed

4.49%

4.89%

5.49%

4.89%

Lowest variable

2.44%

2.09% for 2 yrs then 2.49%

2.44%

2.29%

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

Lowest 1-year fixed rates

LenderAdvertised rate
Unity Bank (first home buyers)

1.84%

The Capricornian

2.55%

First Option Bank

2.59%

Summerland Credit Union

2.59%

Regional Australia Bank

2.79%

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

Lowest 2-year fixed rates

LenderAdvertised rate
Unity Bank

3.04%

Summerland Credit Union

3.19%

Orange Credit Union

3.19%

BankWAW

3.25%

Police Bank

3.29%

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

Lowest 3-year fixed rates

LenderAdvertised rate
BankWAW

3.55%

Unity Bank

3.69%

Summerland Credit Union

3.69%

Family First Credit Union

3.79%

Australian Military Bank

3.84%

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

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This article was reviewed by Data Research Specialist Piyush Pillai before it was published as part of RateCity's Fact Check process.

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