NAB and MyState Bank have announced that they will be passing on the full Reserve Bank hike to variable mortgages.
The announcements come following the central bank’s decision to increase the OCR from 1.35% to 1.85% during its August meeting as it attempts to rein in rising inflation.
NAB variable home loan rates for new and existing customers will increase by 0.5 percentage points from Aug. 12, taking the bank’s lowest variable rate to 3.94%. The last time NAB’s lowest variable rate was this high was in March 2019.
RateCity.com.au showed NAB’s new variable rates for owner-occupiers, effective Aug. 12:
|
|
Old rate
|
New rate
|
Increase in repayments, $500K
|
|
Standard variable
|
5.77%
|
6.27%
|
$153
|
|
Discounted variable
|
4.92%
|
5.42%
|
$147
|
|
Lowest variable
|
3.44%
|
3.94%
|
$135
|
Note: Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years
Unlike rivals CBA and Westpac, NAB has not announced a cut to its lowest four-year fixed rate.
MyState Bank variable home loan interest rates, meanwhile, will lift by 50 basis points, effective Aug. 15 for new and existing customers.
Brett Morgan, MyState Bank managing director and CEO, said that as it’s unlikely to be the last hike from RBA, conversations with customers are around preparing for further rate changes.
Morgan added that as a responsible lender, MyState Bank strictly assess customers’ repayment capacity and include a serviceability buffer above current interest rates.
“Over the past month, our customer contact centre conversations are not just about interest rates, but also about cost-of-living pressures,” he said. “For any customers concerned about their ability to meet upcoming loan repayments, we strongly encourage they get in contact with us as early as possible, as there are ways we can help out.”
