NAB delivers fresh $112 blow to homebuyers
NAB has hiked interest rates for new home loan borrowers.
Aussie homebuyers have been dealt yet another blow, with NAB announcing it will today increase its home loan rates for new customers.
This is the second time in less than two weeks that the major bank has hiked its basic variable rate and the fourth time it has increased variable rates out of cycle with the Reserve Bank’s (RBA) decisions.
NAB will increase its basic variable home loan by 0.10 per cent for borrowers with a deposit greater than 20 per cent. This will see rates increase to 5.99 per cent for owner-occupiers making principal and interest repayments.
Also read: CBA, Westpac, ANZ and NAB hit customers with rate hikes
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Also read: Best home loan rates: Save $488 a month
Canstar finance expert Steve Mickenbecker said the rate hike would be a blow to borrowers already reeling from the Reserve Bank’s 11 interest rate hikes.
“ NAB’s second variable home loan rate increase in a fortnight will further disturb borrowers already shell-shocked after a year of rate hikes,” Mickenbecker said.
“The Reserve Bank cash rate rise in May had already added $79 to the monthly repayment on a $500,000 basic variable loan at NAB, and the 0.10 per cent rise tops this up to $112.”
Mickenbecker said bank margins were coming under pressure as deposits finally started to see the full benefit of the RBA’s cash rate hikes, and other funding costs rose to normal levels following COVID support.
“Though the latest NAB variable rate increase is modest, it continues the process of margin repair, and the other major banks are on the same bandwagon,” he said.
The rate hike comes after NAB followed Commonwealth Bank in dumping its cashback offer for home loan refinancers.
Lowest home loan rates
The lowest ongoing variable rate on Canstar’s database is 4.94 per cent, which is 1.38 per cent below the average rate.
Mickenbecker said borrowers could save $436 per month on a $500,000 home loan by switching from the average to the lowest rate.
“This can cover a big chunk of the $1,133 already added to average monthly home loan repayments in the last 12 months,” he said.
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