CANBERRA: National Australia Bank has hiked mortgage rates across its lending book, out of cycle to any official move, blaming “increasing regulation and elevated funding costs”. The bank’s variable rate for owner-occupier customers will rise from 5.25 per cent to 5.32 per cent. Investor loans will increase from 5.55 per cent to 5.80 per cent.
The changes — including a new fixed rate for first home buyers at 3.69 per cent — mark the first out-of-cycle rate hike by the big banks for both owner-occupiers and investors since late 2015, when Westpac led the industry in repricing home loan books. They come a week after the chief executives of the big four banks appeared before the House of Representatives economics committee for the second time, as part of regular hearings called by the government after several scandals and for failing to pass on the RBA’s full August rate cut.
The changes for investors and owner occupiers come into effect on March 24, while the first homebuyer deal kicks in on March 16. “The decisions we make on interest rates are difficult ones, and we want to assure our customers we do not take them lightly as we seek to achieve the right balance for all our stakeholders while considering the dynamic financial and economic environment in which we operate,” said NAB chief operating officer Antony Cahill.
