Interest rates

NAB bank raises interest rates by 0.3%


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NAB has increased its fixed rates. (Images: Getty).

The NAB has raised its fixed rates to 3 and 4 years as the major Australian banks continue their rate hike campaign.

This is the second time the NAB has raised its 3- and 4-year fixed rates in the past three months, with the new lowest 3-year fixed rate now being 2.18% after rising 0.10% .

For 4-year fixed rates, the new lowest NAB rate is 2.49%, after increasing 0.25%.

The bank also increased its 5-year fixed rate from 0.30% to 2.79%.

Rate type

Old lowest rate

New lowest rate

Switch

3 years fixed

2.08%

2.18%

+ 0.10%

4 years fixed

2.24%

2.49%

+ 0.25%

5 years fixed

2.49%

2.79%

+ 0.30%

Note: Rates are for homeowners who pay principal and interest with the NAB Global Loan. The NAB has also increased its base fixed rates for 3, 4 and 5 years.

He comes a few weeks later.

RateCity.com.au’s research director Sally Tindall said that even though Sydney and Melbourne have weeks, if not months, remaining on lockdown, that doesn’t mean banks will pause on price hikes. rate.

“It is widely accepted that this bump in the road is only temporary,” she said.

“[Reserve Bank of Australia] Governor Lowe has made it clear that rates will not rise until at least 2024. As a result, many banks are still raising rates for three years or more, however, 2-year rate cuts have slowed.

NAB still has its 2-year rate fixed at 1.99 percent, in what Tindall believes is a deliberate move to keep it below 2 percent.

“Without this rate, the bank might have a hard time keeping new customers in what remains an ultra-competitive market,” Tindall said.

“These fixed rate hikes will have no impact on the amount of borrowing, as banks base service tests on the rate of return. However, they remind us that these rates will not stay forever. “

While the Reserve Bank of Australia has kept the official interest rate at its all-time high of 0.1% since November 2020, economists predict that the next interest rate hike will be on the rise.

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