Australia’s third-largest bank, NAB, has made sweeping changes to its home loan rates – the majority of which are hikes.
This move means all four big banks have increased a number of fixed rates within two weeks.
Also read: Going up: TWO major banks hike fixed rates
Also read: ANZ joins CommBank, Westpac in hiking rates
However, NAB has also cut its base variable and 1-year fixed rates today, bringing them in line with Australia’s largest bank, CBA.
NAB variable rate changes for owner-occupiers
NAB has cut its lowest variable rate by 0.40 per cent to 2.29 per cent today, for owner-occupiers paying principal and interest.
“NAB’s rate changes are uncannily similar to CBA’s, with the bank hiking the majority of its fixed rates but sharpening its base variable and 1-year rate.”
Tindall said with COVID-19 restrictions easing and vaccination rates steadily rising, the banks believed the economy would rebound quickly and were factoring in the increased cost of funding.
“While fixed rates are on the rise, the banks are moving in unison, because the last thing they want is to lose business to a rival,” she said.
“The big four banks have strategically made their 1-year fixed rates start with a ‘1’, which might help with marketing, but it won’t give customers looking for protection against rising rates much certainty.”
NAB also slashed its base variable rate for owner-occupiers down to a competitive 2.29 per cent to keep up with CBA and Westpac, who had both previously sharpened these rates.
ANZ’s base variable rate is now sticking out like a sore thumb at an inflated 2.72 per cent.
“While banks are largely hiking fixed rates, there is still plenty of competition across the market with 145 fixed rates under 2 per cent, but these aren’t all likely to hang around in 2022,” Tindall said.