The increase will hit both investors and owner-occupiers
National Australia Bank has announced that it’s hiking interest rates by as much as 0.6% for some borrowers.
NAB said it would increase fixed rates for both owner-occupiers and investors, The Australian reported. The hikes apply to the NAB Choice Package and the Tailored Home Loan.
Homeowners with the NAB Choice Package on a one-year fixed rate will see rates go up by 0.6%, while those on a two-year fixed rate will see a 0.3% hike.
The package’s three-year fixed rate will go up by 0.55%, while the four- and five-year rates will see a 0.4% increase.
For investors, the increases will be 0.4% for one- and two-year fixed rates and 0.55% with three-, four-, or five-year fixed rates, The Australian reported.
The increases are similar for the Tailored Home Loan product.
The new rates apply to anyone wishing to change from a variable to a fixed-rate loan.
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“We are starting to see more and more lenders basing their pricing on clients’ equity and lending to value ratio and therefore the lenders own risk,” CBM Mortgages owner Craig McDonald told The Australian. “The three-year fixed rates on offer are now almost treble what was being offered six months ago, and the banks are factoring in a few cash rate increases into that offering and the gap between variable and fixed rates has increased significantly.”
NAB’s rate hike came on the heels of grim news from Treasurer Jim Chalmers, who said last week that inflation was expected to peak at 7.75% by the end of the year – up from the previously predicted 4.25%.
