National Australia Bank hikes home loan rates
The institution is putting up interest rates on some of its home loan products ahead of the RBA’s next board meeting.
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National Australia Bank is increasing its interest rates on tailored home loan and choice package fixed-rate products.
Effective Friday, the increases of up to 0.30 per cent apply to all new tailored and choice package loans or customers applying to switch from a variable to a fixed rate, or refix their loan, on or after July 21.
It means interest paid on those loans now ranges from 6.39 per cent to 6.74 per cent per annum.
The changes don’t affect existing fixed-rate loans.
Comparison website RateCity.com.au’s research director Sally Tindall says the move follows similar hikes to fixed rates from Commonwealth Bank Australia, Westpac and ANZ in the last 10 days.
“As a result, there are no longer any fixed rates from the big four banks under six per cent,” Ms Tindall says.
“The cheapest NAB fixed rate for owner-occupiers paying principal and interest is 6.29 per cent over three years.
“RateCity.com.au research shows 77 lenders have lifted at least one fixed rate in the last month.”
The change also comes weeks after the Reserve Bank of Australia (RBA) board left the official cash rate on hold at 4.1 per cent for July.
Predictions from the big four at the time of writing have NAB and Westpac forecasting a peak of 4.6 per cent by the September meeting, meaning two more rate rises.
CBA says there will be at least one more rise in that time, up 25 basis points to 4.35 per cent.
ANZ remains the optimists of the group, predicting the rate will remain on hold for the remainder of 2023.
However, these figures are likely to be revised when June’s inflation figures are released by the ABS on Wednesday.
RBA governor Philip Lowe will not have his position renewed in September, with the federal government paving the way for his deputy Michele Bullock to take over as the first woman to lead the central bank.
Originally published as National Australia Bank hikes home loan rates
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