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NAB hikes its basic variable rate for new customers

NAB hikes its basic variable rate for new customers

27 Oct, 2023 - 5 min read

NAB hikes its basic variable rate for new customers

NAB, Australia’s third largest home loan lender, has today increased the rate of its basic variable mortgage by 0.10 percentage points for new customers paying principal and interest.

Existing customers are not impacted.

Today’s change to NAB’s Base Variable Rate

Loan type	Old rate	New rate	Change %-pts
Owner-occupier (P&)	6.49%	6.59%	+0.10
Investor (P&I)	7.01%	7.11%	+0.10

Source: RateCity.com.au. Note: NAB does not have loan-to-value tiers on this loan.

How do the big four banks’ advertised basic variable rates now stack up?

NAB has the highest basic variable rate for new customers with big deposits. However, it has the lowest ongoing variable rate for customers with small deposits.

This is because the bank has hiked its lowest variable rate three times in the last three months, but cut this rate for customers with small deposits on 13 September.

Big four banks’ basic advertised variable rates

Deposit size	CBA	Westpac	NAB	ANZ
Over 40%	6.34%	6.09% for 2yrs then +0.40%	6.59%	6.19%
30% - 40%	6.44%	6.09% for 2yrs then +0.40%	6.59%	6.24%
20% - 30%	6.54%	6.19% for 2yrs then +0.40%	6.59%	6.29%
10% - 20%	6.89%	6.49% for 2yrs then +0.40%	6.59%	6.89%
5% - 10%	7.59%	6.49% for 2yrs then +0.40%	6.59%	7.29%

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

New customer variable rates still climbing, but the pace is slowing

The big four banks have now collectively increased at least one new customer variable rate on 23 occasions since 1 March 2023, in addition to the standard RBA hikes (see full table at end), however this is the first big bank variable rate increase in over six weeks.

While the big four banks’ advertised variable rates are well in the ‘6’s’ and still on the rise, the lowest variable rates in the market are also creeping north.

The RateCity.com.au database shows:

5 lenders were offering ongoing variable rates under 5.50% in July
1 lender is still offering at rate under 5.50% today.

Research from RateCity.com.au shows over the last month, more lenders have increased variable rates than those that have cut for owner occupiers paying principal and interest.

Cuts vs hikes for owner occupiers paying P&I over the last month

Rate type	Lenders that have cut	Lenders that have hiked
Variable	13	24

Source: RateCity.com.au

Lowest ongoing variable rates available on RateCity.com.au database

Lender	Rate
Abal Banking	5.45%
Pacific Mortgage Group	5.59%
RACQ	5.59%
Northern Inland Credit Union	5.59%
BCU Bank	5.64%

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

RateCity.com.au research director, Sally Tindall, said: “NAB is continuing to walk back the new customer discounts that dominated the mortgage market in 2022. This year alone, the bank has increased the rate on its lowest variable loan a total of six times for new customers.”

“The bank has said, repeatedly, it’s willing to accept slower growth in its home loan book and focus its efforts elsewhere,” she said.

“However, if new customers start looking beyond the bank en masse, it may be forced back into the mortgage wars.

“NAB has, however, kept the door open to borrowers with small deposits, offering the lowest ongoing variable rate out of the big four banks to these customers.

“New customer variable increases have notably slowed over the last couple of months, but rates are broadly still creeping up across the market, despite no move from the RBA in the last four meetings.

“The RateCity database shows that in July there were five lenders offering ongoing variable rates under 5.50 per cent. Today there is just one.

“This doesn’t mean borrowers should give up on their refinancing plans. The more people switching lenders, the more likely the banks will be forced to remain competitive.

“Customers need to use this competition, otherwise they risk losing it,” she said.

Variable rate hike from the big four banks since 1 March 2023

Note: these hikes are in addition to RBA increases

Date	Bank	Loan	Change %-pts
1 March 23	CBA	Basic variable	up to 0.10
1 Mar + 10 Mar 23	NAB	Basic variable	up to 0.20
25 March 23	CBA	Basic variable	up to 0.70
28 March 23	ANZ	Basic variable	up to 0.21
31 March 23	CBA	Package loan	up to 0.20
13 April 23	Westpac	Basic variable	0.10
14 April 23	CBA	Package loan	up to 0.12
21 April 23	ANZ	Basic variable	up to 0.10
28 April 23	NAB	Basic variable	up to 0.05
12 May 23	CBA	Basic + package	up to 0.10
23 May 23	NAB	Basic variable	up to 0.10
24 May 23	CBA	Package loan	up to 0.10
16 June 23	CBA	Basic variable	up to 0.10
23 June 23	CBA	Package loan	up to 0.10
23 June 23	Westpac	Basic variable	0.15
14 July 23	CBA	Basic variable	up to 0.07
27 July 23	ANZ	Basic variable	up to 0.15
28 July 23	NAB	Basic variable	up to 0.10
11 August 23	CBA	Basic variable	up to 0.05
30 August 23	NAB	Basic variable	up to 0.15
13 September 23	Westpac	Basic variable	0.10
27 October 23	NAB	Basic variable	up to 0.10

Source: RateCity.com.au

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Product database updated 04 May, 2024

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

Eden Radford

External Comms Lead

Eden Radford is the External Comms Lead for RateCity, bringing almost a decade of experience across the finance services and technology sectors. In prior years, Eden has worked with Lendi, Aussie, Xero, Qualcomm, Accenture, and Dyson, among others, while being a pillar of expertise for government clients and contracts, as well. Eden has a passion for improving financial literacy, data storytelling and helping people better understand the decisions they can make about their own finances.