Last to fall: NAB hikes home loan rates, here’s how it stacks up to the other big banks

After being the only big 4 bank to resist a rate hike in September, NAB has today announced a home loan rate rise for both owner occupiers and investor home loans on the Tailored Home Loan.

The change is effective as of January 31 and sees hikes of up to 16 basis points.

According to NAB Chief Consumer Officer, Mike Baird, the decision was not an easy one, struggling to uphold a balance between rewarding customer loyalty and responding to increases in funding costs.

“Our decision to hold our Standard Variable Rate since September last year, the only major Australian bank to do so, has led to around $70 million remaining in the households of more than 930,000 NAB customers,” Baird said.

Mozo Data Manager Peter Marshall said the rate rise from NAB was no surprise.

“Given that NAB was the only big bank not to raise rates in September last year, and considering that it has to think about the same finding pressures that other lenders have cited while increasing rates, it was really only a matter of time before this happened,” he said.

The rate changes are as follows:

- Owner Occupier Principal and Interest, now 5.36% (+12 basis points)

- Investor Principal and Interest, now 5.96% (+16 basis points)

- Owner Occupier Interest Only, now 5.93% (+16 basis points)

- Investor Interest Only, now 6.25 (+16 basis points)

For an owner-occupier making principal and interest repayments, on a packaged loan of $400,000 over 30 years, the changes mean $28 a month more in monthly repayments than the previous rate or $10,238 more interest over the life of the loan.

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Baird went onto explain that NAB has already begun contacting loyal customers, reassuring them that the bank would be willing to offer a repayment holiday, should they need it.

“Through these check ins we’ve advised more than 100,000 customers that they’re ahead on their repayments which gives them flexibility to take a breather on payments if they ever need it,” he said.

“We’ve also helped almost 200,000 customers understand how they can save more on interest by setting up an offset account.”

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“It’s nice to see NAB taking steps to minimise the impact on existing customers, but for new borrowers, looking outside the big banks at challenger lenders is probably going to mean getting a better deal,” Marshall commented.

The change in rates brings NAB in line with other big banks, which all offer comparable loans with interest rates between 5.36% and 5.38%.

Comparable big bank mortgage rates 

NAB Tailored Home Loan

5.36% (5.49% comparison rate*)

ANZ Standard Variable Rate

5.36% (5.46% comparison rate*)

Westpac Rocket Repay Home Loan

5.38% (5.52% comparison rate*)

CommBank Standard Variable Rate

 5.37% (5.52% comparison rate*)

All loans are ongoing basic variable rates, for owner-occupiers making P&I repayments.

For big bank customers who are looking for a better home loan deal, or new borrowers exploring their options, there are heaps of home loans available from lenders outside the big banks. Check out some hot offers in our home loan comparison table.

5 home loan offers - last updated 1 July 2022

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    variable rate
    comparison rate
    Initial monthly repayment
    2.60% p.a.variable for 24 months and then 3.00% p.a.
    2.96% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • Unloan Variable

    Owner Occupier, Refinance Only

    variable rate
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    Initial monthly repayment
    2.64% p.a.
    2.56% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

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  • Variable Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    variable rate
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    Initial monthly repayment
    2.64% p.a.
    2.66% p.a.

    Purchase and Refinance. Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application.

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  • Mozo Expert Choice Badge
    Variable Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    Initial monthly repayment
    2.59% p.a.
    2.49% p.a.

    $5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply. Mozo Experts Choice Award winner for 2022^.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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