Sub‑6% fixed-rate options have fallen sharply since January
NAB has raised a range of fixed home loan rates by 0.30 percentage points, coming just 14 days after its previous increase.
Following the change, NAB’s lowest advertised fixed rate is 6.34% on a one-year term. The move leaves the bank no longer holding the cheapest fixed offering among the major lenders, with Westpac now lowest at 6.14% for a two-year term.
| Big four banks’ lowest fixed rates | ||||
|---|---|---|---|---|
| CBA | Westpac | NAB | ANZ | |
| 1-year | 6.49% | 6.24% | 6.34% | 6.34% |
| 2-year | 6.34% | 6.14% | 6.39% | 6.39% |
| 3-year | 6.59% | 6.34% | 6.49% | 6.54% |
| 4-year | 6.64% | 6.54% | 6.49% | 6.54% |
| 5-year | 6.79% | 6.54% | 6.49% | 6.59% |
| Source: Canstar.com.au. Rates based on owner-occupier fixed rate loans. LVR requirements apply. | ||||
Canstar’s rate tracking shows fixed-rate increases have been widespread since the Reserve Bank of Australia’s March cash rate rise. According to the price comparison website, 74 lenders have lifted at least one fixed rate over that period. Since 1 April alone, 38 lenders have raised at least one fixed option, including Westpac, ANZ and now NAB.
Canstar’s data also indicates the pool of lenders offering fixed rates below 6% has contracted sharply. The comparison site’s tracking shows 29 lenders now have at least one fixed rate under 6%, down from 83 at the start of the year. The lowest fixed rate cited is 5.49% from Northern Inland Credit Union on a one-year term.
| Lowest fixed rates | ||
|---|---|---|
| Term | Lender | Lowest rate |
| 1-year | Northern Inland Credit Union | 5.49% |
| 2-yearr | Bank Vic, Bank Orange, Defence Bank | 5.79% |
| 3-year | BankVic | 5.79% |
| 4-year | Defence Bank | 5.99% |
| 5-year | Horizon Bank | 5.94% |
| Source: Canstar.com.au. Rates based on owner-occupier fixed rate loans. LVR requirements apply. | ||
“Fixed rate hikes are now starting to balloon as lenders push their prices into higher ground,” said Sally Tindall (pictured right), data insights director at Canstar.com.au. “It seems few banks want to risk having to fund a competitively-priced fixed loan. NAB had been leading the majors with the lowest fixed rates of the big four, but this latest move sees the bank lose that competitive edge.
“Fixed rate hikes have been gaining momentum since late last year, and NAB’s back-to-back rises suggest this trend isn’t slowing down any time soon. Canstar analysis shows 38 lenders have moved rates in the past 10 days alone, with Westpac, ANZ and now NAB lifting fixed rates in quick succession.
“For borrowers, this kind of rapid repricing is a warning shot – the window for locking in a sharper fixed rate is narrowing by the day. Fixed rates under 6% now have a target on their back, with just 29 lenders offering rates below this mark. This number could hit single digits when we reach the next RBA meeting in just over three weeks’ time.”
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