Big four banks raised mortgage rates in October

This decision was made in the last week of October 2021 and, following this decision, the Big Four banks have now increased a number of fixed rates in recent times.

“NAB is the last of the Big Four to reset mortgage rates within two weeks,” said Sally Tindall, research director at RateCity.

NAB flat rate changes for owner-occupiers

To lend

Old rate

New rate

Change

1 year fixed

2.09%

1.99%

-0.10%

2 years fixed

1.99%

2.09%

+ 0.10%

3 years fixed

2.18%

2.28%

+ 0.10%

4 years fixed

2.49%

2.59%

+ 0.10%

5 years fixed

2.79%

2.99%

+ 0.20%

SOURCE: RateCity

Note: The above rates are for the homeowner paying principal and interest on a package with an annual fee of $ 395.

On the other hand, the bank declined its variable and fixed one-year base rates today, aligning them with those of the CBA, Australia’s largest bank.

“The NAB’s rate changes are eerily similar to those of the CBA, with the bank increasing the majority of its fixed rates but fine-tuning its base variable rate and one-year rate. With COVID restrictions easing and vaccination rates steadily rising, banks believe the economy will rebound quickly and factor in the rising cost of funding, ”said Tindall.

“As fixed rates rise, the banks act in unison because the last thing they want is to lose business to a rival.”

NAB cut its lowest variable rate from 0.40% to 2.29% today for homeowners paying principal and interest.

To lend

Old rate

New rate

Change

Basic variable (up to 80% LVR)

2.69%

2.29%

-0.40%

SOURCE: RateCity

Ms Tindall also explained why the NAB lowered its variable rate:

“The Big Four banks have strategically made their one-year fixed rates start with a ‘one’, which might help with marketing, but that won’t give much certainty to customers looking for protection from rising rates. NAB was forced to cut its base variable rate for owner-occupiers to a competitive rate of 2.29% to keep pace with CBA and Westpac, both of which had previously refined those rates. “

On the positive side of these developments, Ms Tindall pointed out that mortgage rates remain competitive: all likely to lag into 2022.

The lowest home owner mortgage rates of the big four banks

ABC

Westpac

NAB

ANZ

1 year fixed

1.99%

1.99%

1.99%

1.99%

2 years fixed

2.09%

1.99%

2.09%

2.09%

3 years fixed

2.29%

2.08%

2.28%

2.39%

4 years fixed

2.39%

2.59%

2.59%

2.69%

5 years fixed

2.99%

2.89%

2.99%

2.89%

Variable

2.29%

1.99% for 2 years then 2.49%

2.29%

2.72%

Source: RateCity.com.au. Note: CBA and Westpac rates correspond to a loan-to-value ratio of up to 70%.

RELATED TERMS

Mortgage

Mortgages are loans that are used to purchase homes and other real estate where the property itself serves as collateral for the loan.

Mortgage

Mortgages are loans that are used to purchase homes and other real estate where the property itself serves as collateral for the loan.

Real estate

Real estate is a type of real estate that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Big four banks raised mortgage rates in October



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Last updated: November 03, 2021

Posted: 03 November 2021