Yahoo Finance $253 more: NAB hikes mortgage rates… again
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. The previous hikes came in October, November and early December.
Since 26 October, NAB’s 3-year fixed rate has increased by a total of 0.96 percentage points.
“Today’s rate hikes from NAB are relatively small but after two months of hikes, they’re really adding up,” RateCity.com.au research director Sally Tindall said.
“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.”
RateCity 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 banks’ fixed rates were ultra-low for most of 2021, however, in the last two months, they’ve started to become less competitive,” Tindall 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.”
And it’s bad news for homeowners, with Tindall predicting rates would likely continue rising in 2022.
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 two 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,” she said.
“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.”
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