Australia’s fourth-largest lender, NAB, today raised its four- and five-year fixed rates to 0.25%, following similar moves by Westpac and the CBA.
NAB was the last of the big banks to have a 4-year fixed rate below 2%. Today’s hike means its four-year low rate fell from 1.98% to 2.19%.
NAB Home Loan Modifications for Homeowners Paying Principal and Interest:
| Lowest rates | Old rate | New rate | Switch |
| 4 years fixed |
1.98% |
2.19% |
0.21% |
| 5 years fixed |
2.24% |
2.49% |
0.25% |
Note: The above rates apply to homeowners paying principal and interest on a fixed price mortgage.
Analysis of the RateCity.com.au database:
- Only 3 lenders now offer fixed 4-year rates of less than 2%, compared to 25 at the start of the year.
- 30 lenders have increased at least a 4-year fixed rate in the past two months.
- 1.95% is BankVic’s lowest 4-year fixed rate.
- Other lenders who hiked 4-year rates last week include Macquarie Bank, QBank, and TicToc.
RateCity.com.au’s research director, Sally Tindall, said: “This NAB increase means that there are no major banks now offering four-year rates below 2%.”
“At the start of the year, 25 lenders were offering at least a four-year fixed rate of less than 2%. Now there are only three left, and they’re probably not going to keep those rates for long, â€she said.
“Banks are closing the door at record rates over four and five years. Three-year rates are expected to be next, potentially in the second half of this year.
“Four-year fixed rates are going to become less popular in the future, now that many of these ultra-low rates are no longer on the table,†she said.
Lenders offering at least a 4-year fixed rate of less than 2%:
BankVic: 1.95%
Illawarra Caisse populaire: 1.99%
ING: 1.99%
The lowest rates on RateCity.com.au database
| Lender | Rate | |
| 1 year fixed | BCU |
1.67% |
| 2 years fixed | Homestar Finance |
1.74% |
| 3 years fixed | Credit Union SA |
1.79% |
| 4 years fixed | Vic Bank |
1.95% |
| 5 years fixed | Bank Australia |
2.10% |
| Variable | Reduce home loans |
1.77% |
RateCity.com.au. The rates are for homeowners who pay principal and interest. Certain LVR requirements apply.
The Big Four Banks’ Lowest Rates for Homeowner Home Loans
| ABC | Westpac | ANZ | NAB | |
| 1 year fixed |
2.09% |
1.99% |
2.04% |
2.09% |
| 2 years fixed |
1.94% |
1.79% |
2.04% |
1.89% |
| 3 years fixed |
2.14% |
1.88% |
2.04% |
1.98% |
| 4 years fixed |
2.19% |
2.19% |
2.24% |
2.19% |
| 5 years fixed |
2.99% |
2.49% |
2.24% |
2.49% |
| Variable |
2.69% |
2.19% for 2 years then 2.69% |
2.72% |
2.69% |
Source: RateCity.com.au. Note: Westpac rates are a loan to value ratio of up to 70%. Variable NAB with compensation for loans of $ 750,000 and over.
