NAB announces home loan interest rate rise

By |
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.

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 : new farm , wiley park , glendenning , east victoria park , st peters

  • Douges says on 28/10/2015 07:36:00 PM

    How can you win, every time you get some sort of reprieve the bank scoures it back,what good is the RBA, they drop it and the greedy banks take it back.

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 an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here