Home loan interest rates are on the way up.
The NAB just announced increases in interest rates on both its owner-occupier and investor home loans.
The banks have been progressively tightening lending for property investment in response to regulatory measures but have generally, until now, held the line on owner occupier rates.
The NAB says its variable rate for home loans will rise by 0.07 percentage points to 5.32%, effective March 24.
Those with a standard variable rate home loan of $300,000 will pay an extra $13 each month.
“I encourage customers who want certainty about their repayments, or to find out what other options are available, to speak with their banker or broker, and whether a package, fixed rate, or split home loan might be right for their circumstances,” says NAB Chief Operating Officer Antony Cahill.
NAB’s variable rate for residential investment loans will rise by 0.25 percentage points to 5.80%.
The new rates at a glance:
“We’re committed to managing our investor lending growth in line with the regulator’s guidance,” says Cahill.
He says difference between what the bank charges and how much it costs to fund a mortgage remains under pressure, with intense competition, increasing regulation and higher funding costs.
“By making a series of changes, both up and down, we are seeking to balance these across our entire mortgage portfolio,” he says
“Interest rates remain at near historic lows, and around 85% of NAB customers pay below our current standard variable rate through a range of discounts.”
The NAB also announced a 3.69% rate for new home buyers, saving $50 a month in repayments based on a $300,000 loan.