National Australia Bank’s (NAB) four-year fixed rates for owner-occupiers paying principal and interest have risen by 0.21 percentage points from today, and its five-year fixed rates for the same borrowers by 0.25 percentage points.
Macquarie Bank has also increased the rate on its four-year and five-year fixed rates by up to 0.30 percentage points for owner-occupiers and investors. At the same time, the bank has cut its variable rates for new owner-occupier and investor borrowers by up to 0.40 percentage points.
The fixed rate increases see both NAB and Macquarie Bank join 15 other lenders on Canstar’s database that have increased longer-term fixed home loan rates since the start of April, including Westpac and its subsidiaries. Commonwealth Bank increased its four-year fixed rates in late March, while ANZ has not increased fixed rates this year.
Canstar’s finance expert Steve Mickenbecker said NAB had become the third major bank to lift its longer-term fixed home loan rates in recent weeks, as a range of lenders have shifted their focus as to where to offer their cheapest rates.
“The banks have been reducing fixed home loan rates for months, but many have now moved their focus from offering ultra-low longer four- and five-year rates to the more popular two- and three-year rates,” Mr Mickenbecker said. “Higher long-term rates help fund the skinny short term rates.”
“Economic recovery is in the air, driving longer-term fixed interest rates up, and the sky-high Federal Budget spending will provide further impetus to this trend.”
NAB’s new home loan interest rates
After today’s changes, NAB’s four- and five-year fixed home loan rates for owner-occupiers paying principal and interest are as follows:
- Four-year fixed, package rate: 2.19%, comparison rate 3.76%
- Four-year fixed, standard rate: 2.29%, comparison rate 3.91%
- Five-year fixed, package rate: 2.49%, comparison rate 3.76%
- Five-year fixed, standard rate: 2.59%, comparison rate 3.88%