NAB increases fixed home loan rates by up to 60 bp

A gold chrome model house sitting on a digital graph illustrating rate hikes in the home loan market.

NAB has become the latest Big Four Bank to raise fixed rates for home loans, joining ANZ, Westpac, and CommBank in the continuing saga of the April rate-hike scramble

These latest changes apply to its owner-occupier P&I loans, with 50 basis point increases to 2, 3, and 5-year terms and a whopping 60 bp jump on 4-year terms. There have been no changes made to 1-year terms on the same product.

These rising fixed rates signal mounting anticipation over an impending rise in the official RBA cash rate, which economists at all four major banks predict will move as early as June

As a result, the overwhelming majority of fixed rates under 2% p.a. have disappeared from the market entirely.

RELATED: Are there any fixed home loan rates that start with a 1?

The table below shows the new fixed rates on the NAB Tailored Home Loan (Fixed) for owner-occupiers making P&I repayments.

NAB Tailored Home Loan (Fixed) (P&I) - 22 April 2022

TermChangeCurrent Rate
1-year
0 bp
3.09% p.a. (4.52% p.a. comparison rate*)
2-year50 bp4.09% p.a. (4.57% p.a. comparison rate*)
3-year50 bp4.59% p.a. (4.67% p.a. comparison rate*)
4-year50 bp4.89% p.a. (4.78% p.a. comparison rate*)
5-year60 bp5.09% p.a. (4.89% p.a. comparison rate*)

These new rates now represent NAB’s cheapest basic fixed home loan option.

Comparing their lowest rates with the other Big Four, we can get an idea about how NAB’s changes reshuffle the pecking order.

Big Four fixed rate home loans comparison (OO, P&I) - 22 April 2022

BankLowest 2-year rateLowest 5-year rate
CommBank
3.94% p.a. (4.59% p.a. comparison rate*)
4.64% p.a. (4.74% p.a. comparison rate*)
Westpac3.99% p.a. (4.61% p.a. comparison rate*)4.89% p.a. (4.85% p.a. comparison rate*)
ANZ4.04% p.a. (3.34% p.a. comparison rate*)4.94% p.a. (3.80% p.a. comparison rate*)
NAB4.09% p.a. (4.57% p.a. comparison rate*)5.09% p.a. (4.89% p.a. comparison rate*)

Each of the Big Four banks have escalated their fixed rates in the past three weeks alone. The changes further push interest rates back to pre-pandemic levels and beyond, at a time when soaring house prices and costs of living continue to squeeze consumer wallets.

More than ever, keeping a finger on the pulse of the property market will give first home buyers a much needed advantage.

RELATED: Looking to buy a home? You'll need to know the property trends of 2022

Looking for a home loan? Use our fixed rate comparison tool to help find competitive rates.

Compare fixed rate home loans - last updated 13 August 2022

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    4.49% p.a.
    fixed 1 year
    3.81% p.a.

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  • Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

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    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    4.03% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.

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    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.55% p.a.
    fixed 1 year
    3.91% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 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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