Third major bank joins rate hikes

by Julia Corderoy28 Jul 2015
NAB has become the third major lender to introduce interest rate hikes, announcing rate increases on interest-only home loans.

In communication sent out to brokers yesterday, the major bank revealed that interest rates on interest-only home loans – both investment and owner occupied – as well as line of credit facilities will be increasing by 29 basis points, effective 10 August 2015 for new customers. 

Interest-only fixed rates for new customers will also increase by 29 basis points, effective 10 August 2015.

In addition, NAB announced that existing variable rate loans with interest-only repayments will increase by 29 basis points 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 29 basis point increase, the lender said.

According to the major bank, these changes are “in response to industry and regulator concerns to temper growth in investor lending.”

This announcement comes after ANZ and CBA announced a scope of changes to their standard variable rate and fixed interest rates on investor home loans.
 

COMMENTS

  • by Aaron 28/07/2015 8:57:35 AM

    Well done APRA. If your intention was to increase interest rates for investors retrospectively, mission accomplished!! If this was not your intention, don't use the bank lever to adjust the market. #feelsorryforotpbuyers2014

  • by Mortgageguy 28/07/2015 10:06:05 AM

    Increasing rates on owner occupied, interest only, is just gouging under the "APRA made me do it" umbrella, shame NAB, shame.

  • by Dean 28/07/2015 10:21:54 AM

    Brokers need to look at Credit Unions. We have had to provide more capital for years yet we still remain competitive. Another reason to flick the big banks as this move is nothing more than to maintain their profitability at the expense of their customers.