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Home Loan Rates

Following Westpac and CBA, NAB also Increase Home Loan Rates

October 23, 2015

As the two major banks Westpac and Commonwealth Bank of Australia has made a variable rate home loan hike by 2 and 15 basis pints respectively, so following the two, NAB has also announced a increase in the home loan rates by 17 basis points.

Following the above, the new NAB’s rate will be 5.6%, that will be in effect from 12th of November. Similarly the new rate of CBA will be 5.6% for owner – occupiers and 5.87% for investors coming into effect from 20th November and for Westpac, the new rate come out to be 5.68% for owner-occupiers and 5.95% for investors coming into effect from 20th November.

The two major banks have made a difference in rates for both investors and owner occupiers whereas NAB has kept the rates same for both. These changes were only for variable loans, and fixed rate loans were kept unchanged.

NAB personal banking boss Gavin Slater said, “The decision was “carefully considered” in the wake of the regulatory changes this year. In May this year, NAB took early steps to strengthen our capital position by raising $5.5 billion to begin to address expected changes in capital requirements”.

The banks said, “This decision was taken due to banking regulator’s recent decision to increase the major banks’ mortgage “risk weights” from July next year — as recommended by the Financial System Inquiry — forcing them to set aside more capital to write home loans”.

News Post – http://www.theaustralian.com.au/business/financial-services/nab-becomes-third-big-bank-to-hike-home-loan-rates/story-fn91wd6x-1227579547338

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