NAB hikes rates for new borrowers: 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 new customers.
NAB has hiked the Base Variable Rate Home Loan special offer rate to 3.87%, up 18 basis points from 3.69%. The change is effective as of Friday 9 November, and only affects new customers.
“This is a reduction in the discount applied to this particular loan. It’s not a rate hike comparable to what the other big 4 banks did, which saw their rates rise across the board,” said Mozo Data Manager Peter Marshall.
“This isn’t the typical move from banks - usually existing customers are hit just as hard if not worse than new borrowers, so it seems NAB is still trying to do what it can to keep its existing customers happy.”
For loans with a comparable LVR, borrowing amount and other credentials, ANZ now offers the lowest rate out of the big four, while NAB’s rate is still below what’s on offer at Westpac and CBA.
Comparable big bank mortgage rates
| CommBank Extra Home Loan | 3.89% (3.81% comparison rate*) |
|---|---|
| ANZ Simplicity Plus | 3.81% (3.85% comparison rate*) |
| NAB Base variable rate home loan special offer | 3.87% (3.91% comparison rate*) |
| Westpac Flexi First Option Home Loan | 3.98% (3.99% comparison rate*) |
All loans are ongoing basic variable rates, for owner-occupiers making P&I repayments.
The big banks have been hiking rates out of line with the Reserve Bank’s official cash rate, which has been frozen at 1.50% since August 2016, and looks set to remain stable in tomorrow’s Melbourne Cup Day RBA announcement, and indeed, for the near future.
NAB’s hike in particular comes after all the big banks posted declining or flat profits for the year. After holding out on a rate rise in an attempt to “rebuild trust” with its borrowers, NAB saw the biggest decline, with profits dropping 14% to $5.7 billion.
Big Bank Full Year Profits 2018
| Profit decrease/increase | Profit | |
|---|---|---|
| CommBank | - 4.8% | $9.23 billion |
| ANZ | - 5% | $6.49 billion |
| NAB | - 14% | $5.7 billion |
| Westpac | Flat | $8.06 billion |
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.
*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.
* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.
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