National Australia Bank (NAB) has become the third major lender to announce interest rate hikes, with rate increases on the way for investors and owner-occupiers.
In communication sent out to brokers on Monday, NAB became the third major Australian bank to announce rate increases in recent times as lenders react to messages from the Australian Predential Regulation Authority
The NAB increases follow rate increases announced by ANZ
and the Commonwealth Bank
, as well as non-major lender, Macquarie Bank
, however the NAB increases will hit investors and owner-occupiers.
Effective from August 10, NAB will increase interest rates on interest-only home loans and line of credit facilities by 0.29%.
Interest-only fixed rates for new customers will also be subject to the same increase.
In addition, NAB announced that existing variable rate loans with interest-only repayments will increase by 0.29% for the duration of the interest-only period, effective from 10 September 2015.
Existing interest-only applications impacted by the recent increase to investor pricing will be adjusted accordingly to reflect a total 0.29% increase, the lender said.
According to NAB, the changes are “in response to industry and regulator concerns to temper growth in investor lending.”
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out