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NAB hikes again as fixed rates with a ‘3’ start to become the norm

NAB hikes again as fixed rates with a ‘3’ start to become the norm

Australia’s third largest bank, NAB, has lifted fixed rates by up to 0.10 per cent today for owner-occupiers and investors.

This is the fourth time NAB has lifted fixed rates in the past two months.

NAB hikes for owner-occupiers paying principal and interest

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LoanOld rateNew rateChange
1yr fixed

2.49%

2.54%

0.05%

2yr fixed

2.59%

2.69%

0.10%

3yr fixed

3.09%

3.14%

0.05%

4yr fixed

3.29%

3.34%

0.05%

5yr fixed

3.49%

3.59%

0.10%

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

Previous NAB owner-occupier fixed rate hikes:

NAB hikes over the last two months

Since 26 October, NAB’s 3-year fixed rate has increased by a total of 0.96 percentage points.

Loan26 Oct 2021TodayChangeDifference in payments ($500K)
1yr fixed

2.09%

2.54%

0.45%

$115

2yr fixed

1.99%

2.69%

0.70%

$180

3yr fixed

2.18%

3.14%

0.96%

$253

4yr fixed

2.49%

3.34%

0.85%

$228

5yr fixed

2.79%

3.59%

0.80%

$219

Source: RateCity.com.au. Note: monthly repayments are for the fixed rate term and are based on an owner-occupier paying principal and interest taking out a $500,000, 30-year loan. 

Lenders who have moved at least one rate in the past two months

Rate typeLenders that have cutLenders that have hiked
1yr fixed2245
2yr fixed2068
3yr fixed476
4yr fixed548
5yr fixed766
Variable5910

Source: RateCity.com.au. Last two months is 23 October to 22 December 2021.

Number of fixed rates on the RateCity.com.au database for owner-occupiers paying principal and interest:

  • 45 fixed rates start with a ‘1’.
  • 699 fixed rates start with a ‘2’.
  • 454 fixed rates start with a ‘3’.

RateCity.com.au research director, Sally Tindall, said: “Today’s rate hikes from NAB are relatively small but after two months of hikes, they’re really adding up.”

“NAB’s 3-year fixed rate for owner-occupiers paying principal and interest is now almost a full percentage point higher than it was eight weeks ago,” she said.

RateCity.com.au analysis shows the average mortgage holder taking out a 3-year fixed rate with NAB today on a $500,000, 30-year loan is likely to pay $253 more a month than someone who fixed two months ago.

“The big four bank fixed rates were ultra-low for most of 2021, however, in the last two months, they’ve started to become less competitive,” she said.

“While fixed rates are lifting across the board, the gap between the lowest fixed rate loans and the big banks is starting to widen, making it all the more important to shop around.

“We expect fixed rates to keep on rising in 2022, creating a very different landscape to what we’ve become accustomed to,” she said.

The latest ABS data shows a record $332 billion worth of loans have been fixed since the start of COVID, with many customers locking in for 2 years.

“Next year there’s going to be a lot of mortgage holders coming off a fixed rate starting with a ‘1’ who are going to get the shock of their lives when they discover just how far prices have climbed.

“If you’re nearing the end of your fixed rate, diarise the date and get ready to refinance to the sharpest deal available to you. There are still 45 fixed rates under 2 per cent for owner-occupiers paying principal and interest, but the list is shrinking by the day,” she said.

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Source: RateCity.com.au. Note the lowest rates available to owner-occupiers are used.

Lowest big four bank owner-occupier home loan rates

Rate typeCBAWestpacNAB ANZ
1 yr fixed

2.54%

2.34%

2.54%

2.39%

2 yr fixed

2.69%

2.49%

2.69%

2.59%

3 yr fixed

3.14%

2.89%

3.14%

2.99%

4 yr fixed

3.34%

3.19%

3.34%

3.39%

5 yr fixed

3.59%

3.39%

3.59%

3.59%

Variable

2.29%

2.19%

2.29%

2.29%

Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply.

Lowest rates on the RateCity.com.au database

Rate typeLenderAdvertised rate
1 yr fixedGreater Bank

1.59%

2 yr fixedBeyond Bank

1.79%

3 yr fixedAustralian Mutual Bank

1.98%

4 yr fixedBankVic

2.39%

5 yr fixedBankVic

2.49%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au. Note: Some loan-to-value ratio requirements apply

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

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