NAB increase 2- 3-and 4-year fixed home loan rates

NAB now has just one rate under 2 per cent, its 2-year fixed rate at 1.99 per cent.

It follows the decision by Australia’s third largest lender, NAB, to hike its 2-,3- and 4-year fixed rates for owner-occupiers paying principal and interest by up to 0.10 per cent.

RateCity.com.au research director, Sally Tindall, noted the RBA’s term funding facility, which has been offering banks cheap money at just 0.10 per cent, fixed for three years wraps up today.

“With this option off the table from tomorrow, banks will have to look elsewhere for cheap funding and the alternatives are likely to come with a higher price tag.

“If you haven’t fixed your home loan yet, there is still time. The RateCity.com.au database shows there are still 191 rates under 2 per cent.

“Don’t rush out and panic fix just because you think you might miss out on a good deal.

“Fixed rates have lots of extra terms and conditions that can limit your ability to get ahead on your loan. Take the time to work out what type of loan best suits your finances before you jump in,” she said.

This is the second time in two months that the bank has hiked its 4-year fixed rate, having increased this rate back in May by 0.21%, Canstar’s Steve Mickenbecker noted.

All of the big four banks still offer 2-year fixed rates below 2%, while Westpac is the only big four bank to offer a 1-year and 3-year fixed rate home loan below 2%.