Interest rate rises have now been announced by three out of the big four banks after NAB today announced that it will increase its standard variable interest rate in early November.
NAB’s rate rise, which comes a day after the Commonwealth Bank and week after Westpac announced their rate rises, will see the bank’s existing variable rate increase by 0.17% p.a. to 5.60% p.a.
The increase will come into effect on 12 November.
Like both Westpac and Commonwealth, NAB said the rise had been bought about by the changed requirements for how much capital banks are required to hold.
“There are a range of factors that come into consideration in interest rate decisions. The home loan market is dynamic, with multiple changes being seen across the industry,” NAB group executive for personal banking Gavin Slater said.
“Regulatory changes on capital requirements also increase the costs associated with providing home loans. In May this year, NAB took early steps to strengthen our capital position by raising $5.5 billion to begin to address expected changes in capital requirements,” Slater said.
Slater said the bank believed its rise would balance the needs of customers and shareholders and that the bank would still endeavour to provide a competitive service.
“We appreciate that price is important, but we also know that customers want us to provide the right help and advice, the right products, and deliver innovative digital capability.
“Interest rates are at historically low levels and NAB remains committed to providing a competitive proposition for our customers.”
Fixed-rate home loans will not be subject to the change.
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