NAB bucks the fixed-cut trend at the big four

The major mortgage lender hikes select rates

By Mina Martin

29 Sep 2023

NAB has bucked the recent tide of fixed-rate cuts at the big banks, by lifting select rates by up to 0.15 percentage points.

Australia’s third-biggest mortgage lender raised its owner-occupier two-year fixed rates by 0.15pp for customers paying principal and interest, and its four-year rates by 0.1pp for the same borrowing type.

For select investors, NAB has also lifted its three-year and four-year fixed rates by up to 0.05pp.

NAB’s latest two-year fixed rate hike reverses the bank’s decision to cut this rate a couple of weeks ago, but at 6.34%, the two-year fixed rate remains 0.2pp lower than it was at the start of the month, despite the hike.

See the table for NAB’s latest fixed-rate cuts, for owner-occupiers paying principal and interest, with 30%-plus deposit.

Sally Tindall, RateCity.com.au research director, said the rate change “means NAB no longer has the lowest two-year fixed rate out of the big four banks, passing that baton on to ANZ,” which also currently has the lowest one-year fixed rate of the big four.

NAB’s three-year fixed rate, meanwhile, was equal to CBA’s.

See table below for the big four banks’ lowest advertised fixed rates.

But while ANZ has the lowest short-term fixed rates out of the big four banks, Tindall said these rates are still oceans away from the lowest fixed rate offers in the market.

See table below for the lowest fixed rates on RateCity.com.au for owner-occupiers paying principal and interest.

“This is a timely reminder to anyone thinking of fixing to use up-to-date research when selecting a fixed rate,” Tindall said. “With so much movement in the market it’s no surprise the majority of borrowers aren’t willing to tie themselves to a fixed rate just yet.”