Last Big Four bank lifts its interest rate

The National Australia Bank has become the last of the major lenders to lift its fixed rate loans, closing the door on Big Four rates under 2 per cent.

In the third hike in just over five weeks, the NAB increased its owner-occupier and investor fixed rates by up to 0.50 per cent, including its one-year fixed rate, which was previously 1.99 per cent.

On October 27, the NAB had previously increased its two-five-year fixed rates by up to 0.20 per cent, then on November 11 it increased them again by up to 0.51 per cent.

The latest move follows in the footsteps of Westpac, who announced they would discontinue their 1.99 per cent introductory variable rate on November 24. research director, Sally Tindall noted NAB had succumbed to pressure and joined its other Big Four counterparts.

“NAB was the last Big Four bank to hang on to a rate starting with a ‘1’, but the bank has succumbed to funding pressures just like its rivals,” she said.

“The number of fixed rates under 2 per cent is fast disappearing.

“Six months ago, there were 166 fixed rates starting with a ‘1’, and now there are just 78, and the exodus is far from over,” Ms Tindall noted.

“Borrowers who had already fixed their loans with NAB will be breathing a sigh of relief at this news, but it will be a very different situation when they come off their fixed rates.

“When people go to re-fix their loan in one- or two-years’ time they could find the majority of rates start with a ‘3’,” she said.  

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