NAB has hiked fixed rates for its owner-occupier and investor loans, with increases of up to 0.32 percentage points.
This is more than a standard 0.25 RBA hike on the banks’ lowest 2-year fixed rate, just three days after the central bank’s cash rate decision.
NAB’s lowest fixed rates | |||
|---|---|---|---|
Old rate from | New rate from | Change %-pts | |
1-year | 6.59% | 6.79% | +0.20 |
2-year | 6.49% | 6.81% | +0.32 |
3-year | 6.64% | 6.92% | +0.28 |
4-year | 6.64% | 6.92% | +0.28 |
5-year | 6.64% | 6.94% | +0.30 |
Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
This is the second time NAB has increased fixed home loan rates in the last 15 days with the bank hiking each of its lowest fixed rates by 0.15 on 17 September.
As a result, NAB’s two year fixed rate, for example, has now risen by 0.47 percentage points in just over two weeks.
CBA, Westpac and ANZ have also hiked their fixed rates in the last few weeks, with CBA hiking by up to 0.48 percentage points while Westpac hiked by up to 0.45.
As a result, the lowest fixed rate from a big four bank is now 6.49% from ANZ available for both a 1- and 2-year term.
Big four banks’ lowest rates | ||||
|---|---|---|---|---|
CBA | Westpac | NAB | ANZ | |
1-year | 6.78% | 6.74% | 6.79% | 6.49% |
2-year | 6.82% | 6.74% | 6.81% | 6.49% |
3-year | 6.89% | 6.94% | 6.92% | 6.64% |
4-year | 6.89% | 7.09% | 6.92% | 6.64% |
5-year | 6.94% | 7.14% | 6.94% | 6.69% |
Variable* | 6.34% | 6.24% | 6.29% - 7.04% | 6.50% |
Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply. Variable rates are effective 9 October.
What is a good rate now?
While the big four banks’ lowest rates now start with a 6 or a 7, there are just three banks offering fixed owner-occupier rates under 6%, at least for now.
Lowest fixed rates on Canstar | ||
|---|---|---|
Lender | Rates from | |
1-year | Police Credit Union | 5.79% |
2-year | Police Credit Union | 5.89% |
3-year | Police Credit Union | 5.89% |
4-year | Southern Cross Credit Union | 6.29% |
5-year | Southern Cross Credit Union | 6.29% |
Source: Canstar. Rates based on owner-occupier fixed-rate loans. LVR requirements apply.
Canstar analysis shows a borrower with a $600,000 mortgage and 25 years remaining could potentially save an estimated $776 in interest over the next 12 months by opting for the lowest 1-year fixed rate rather than the lowest variable rate, should CBA’s cash rate forecast materialise. That is, no further hikes, but one cash rate cut in the next 12 months, in August 2027.
If Westpac’s prediction of a further hike in November materialises, and there is still a cut in the next 12 months in August 2027, that same borrower could pay $2,022 less interest as a result of opting for fixed.
This assumes banks pass on variable rate changes to their customers a month after a cash rate hike. It does not factor in any extra repayments or fees.
However, the reality is that no one knows for certain what the cash rate, and therefore variable rates, will do in the next 12 months.
Lowest 1 year fixed vs lowest variable, $600,000 debt | |
|---|---|
No. of 0.25%-pt hikes | Which comes out on top after 1 year? |
No more hikes | Fixed by $776 |
Hike in November | Fixed by $2,022 |
Source: Canstar. Calculations are estimates based on an owner occupier paying principal and interest with a $600k debt at 1 October 2026 and 25 years remaining. Both scenarios assume a 0.25 percentage point cut in August 2027. Assumes banks pass on RBA changes to variable rates the month after. Does not factor in fees or extra repayments.
Canstar’s Data Insights Director, Sally Tindall, says, “The ink was barely dry on NAB’s last fixed-rate hike announcement and it’s already served up another one.”
“As a result, NAB’s lowest 2-year fixed rate has risen by 0.47 in just over two weeks, suggesting the bank is now factoring in yet another rate hike in the months ahead.
“With the big banks’ fixed rates now largely above 6.50 per cent, borrowers looking to lock in are facing a very different market to the one we had a few months ago.
“Australian borrowers are not flocking to fixed rates. CBA’s full year results show just how out of favour they remain, with 5 per cent of its residential mortgages on a rate that’s locked in.
“This is understandable. The last time many borrowers fixed their mortgage, they did so at a rate that started with a ‘2’ or even a ‘1’. It’s pretty difficult for people to lock in a figure when that figure is now likely to start with a ‘6’.
“However, for those that want and need a financial ceiling on their mortgage repayments, fixing could bring them the security they need, and, if borrowers shop around, they can still find fixed rate deals under 6 per cent – at least for now.
“The very small handful of fixed rates that still start with a 5 have a target on their backs after this latest cash rate hike.”
