Fixed home loan rates are continuing to climb, with NAB the latest Big Four bank to hike.
RateCity research director Sally Tindall said the move by NAB showed that the big banks were on the same page when it came to rates.
“NAB has bowed to pressure once again, hiking fixed rates as cost of funding pressures bite,” she said.
“NAB’s fixed rates are now up to 1.56 percentage points higher than they were 12 months ago. That’s a huge jump that’s likely to cause some borrowers to rethink their strategy.”
The major banks’ 3-, 4- and 5-year fixed rates are now all above pre-pandemic levels.
“Westpac and ANZ currently have the lowest rates out of the Big Four banks, however, with the cost of fixed-rate funding continuing to increase, both lenders are likely to be mulling over further rate hikes,” Tindall said.
“Within the next six months, we could see a number of the longer-term Big Four bank fixed rates hit 4 per cent.”
Tindall said for borrowers wanting to find the cheapest rate available, there was still time to nab something under 2 per cent, but they were disappearing quickly.
“There are still a handful of 1- and 2-year fixed rates under 2 per cent, but they’re becoming increasingly harder to find, which makes shopping around all the more important,” she said.
Rate rise on horizon
Rate rises are coming and Aussies need to be prepared, Reserve Bank of Australia (RBA) governor Philip Lowe has warned.
“One of the things that I think will happen is that interest rates will go up. I can't tell you when, but they will go up,” Lowe said.
He said mortgage holders should ensure they had a “buffer” in place to prepare them for a rise in their monthly repayments.