Australia’s third largest lender, NAB, has hiked its 2-,3- and 4-year fixed rates for owner-occupiers paying principal and interest by up to 0.10 per cent.
As a result, NAB now has just one rate under 2 per cent, its 2-year fixed rate at 1.99 per cent.
NAB fixed rate changes for owner-occupiers paying principal and interest:
| Lowest rate | Old rate | New rate | Change |
| 2-year | 1.89% | 1.99% | 0.10% |
| 3-year | 1.98% | 2.08% | 0.10% |
| 4-year | 2.19% | 2.24% | 0.05% |
Note: the above rates are for owner-occupiers paying principal and interest on a package home loan with a loan-to-value ratio of 80% or less.
RateCity.com.au database analysis: fixed rate changes in the last two months
| Lenders that have cut | Lenders that have hiked | Current lowest rate | |
| 1 yr fixed | 21 | 13 | 1.67% |
| 2 yr fixed | 25 | 19 | 1.78% |
| 3 yr fixed | 19 | 27 | 1.79% |
| 4 yr fixed | 3 | 26 | 2.14% |
| 5 yr fixed | 5 | 27 | 2.24% |
Source: RateCity.com.au. Note some lenders have hiked and cut multiple home loans rates.
RateCity.com.au research director, Sally Tindall, said: “NAB is following in what is now a well-worn path of fixed rate hikes from the banks.”
“While the majority of hikes are still focused on longer-term fixed rates, in the last few weeks we’ve started to see a rise in the number of lenders hiking 2-year rates, including from NAB today,” she said.
“The RBA’s term funding facility, which has been offering banks cheap money at just 0.10 per cent, fixed for three years wraps up today.
“With this option off the table from tomorrow, banks will have to look elsewhere for cheap funding and the alternatives are likely to come with a higher price tag.
“If you haven’t fixed your home loan yet, there is still time. The RateCity.com.au database shows there are still 191 rates under 2 per cent.
“Don’t rush out and panic fix just because you think you might miss out on a good deal.
“Fixed rates have lots of extra terms and conditions that can limit your ability to get ahead on your loan. Take the time to work out what type of loan best suits your finances before you jump in,” she said.
Lowest big four bank owner-occupier home loan rates
| CBA | Westpac | NAB | ANZ | |
| 1 yr fixed | 2.09% | 1.99% | 2.09% | 2.04% |
| 2 yr fixed | 1.94% | 1.89% | 1.99% | 1.94% |
| 3 yr fixed | 2.19% | 1.98% | 2.08% | 2.04% |
| 4 yr fixed | 2.24% | 2.19% | 2.24% | 2.49% |
| 5 yr fixed | 2.99% | 2.49% | 2.49% | 2.69% |
| Variable | 2.69% | 2.19% for 2 yrs then 2.69% | 2.69% | 2.72% |
Source: RateCity.com.au. Note: Westpac's rates are for a loan to value ratio of up to 70%.
Lowest rates on the RateCity.com.au database
| Lender | Rate | |
| 1 yr fixed | BCU | 1.67% |
| 2 yr fixed | BCU | 1.78% |
| 3 yr fixed | Credit Union SA | 1.79% |
| 4 yr fixed | Teachers Mutual | 2.14% |
| 5 yr fixed | ANZ/ UBank | 2.24% |
| Variable | Reduce Home Loans | 1.77% |
Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply.
