NAB has raised its fixed home loan rates, losing its position as the cheapest among the major banks, delivering another blow to mortgage holders.
On Friday, big bank NAB hiked fixed rates by 0.30 percentage points, just 14 days after the bank last lifted its fixed loans.
As a result, NAB’s lowest fixed rate is 6.34 per cent, available for a 1-year term.
This move means NAB no longer offers the lowest fixed rate out of the majors, with that title now held by Westpac at 6.14 per cent for a 2-year term.
For those on fixed rates, the hikes keep rolling in.
Rate tracking by Canstar.com.au shows 74 lenders have hiked at least one fixed rate since the March RBA cash rate rise, with 38 lenders hiking since 1 April alone, including three of the big four banks – Westpac, ANZ and now NAB.
Out of all lenders, majority have hiked at least once since the March RBA meeting. Photo: Supplied Canstar
Big four banks lowest fixed rates revealed. Photo: Canstar
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There are now just 29 lenders with at least one fixed rate under 6 per cent, compared to 83 at the start of this year.
The lowest fixed rate is now 5.49 per cent from Northern Inland Credit Union for a 1-year term.
Canstar.com.au data insights director Sally Tindall said fixed rate hikes are now starting to balloon as lenders push their prices into higher ground.
“It seems few banks want to risk having to fund a competitively-priced fixed loan,” she said.
“NAB had been leading the majors with the lowest fixed rates of the big four, but this latest move sees the bank lose that competitive edge.
Canstar data insights director Sally Tindall said fixed rates are starting to balloon. Picture: Tim Hunter.
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Fixed rate hikes have been gaining momentum since late last year, and NAB’s back-to-back rises suggest this trend isn’t slowing down any time soon, according to Ms Tindall.
Canstar analysis showed 38 lenders have moved rates in the past 10 days alone, with Westpac, ANZ and now NAB lifting fixed rates in quick succession.
“For borrowers, this kind of rapid repricing is a warning shot – the window for locking in a sharper fixed rate is narrowing by the day,” Ms Tindall said.
“Fixed rates under 6 per cent now have a target on their back, with just 29 lenders offering rates below this mark. This number could hit single digits when we reach the next RBA meeting in just over three weeks’ time.”
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