NAB has become the first of the big four banks to hike its variable home loan rate following the Reserve Bank’s interest rates increase.
It has taken little time for banks to pass on that increase to their mortgage holders, with NAB announcing today its variable home loan rate would rise by 0.25 per cent, effective from November 17.
It is also increasing the bonus interest rate on its reward saver accounts by the same amount, up to an even 5 per cent. That change will also come into effect on November 17.
“While most of our customers are in good shape, there may be some people who are more concerned about the first rate rise since mid-year which is why it’s crucial to reach out to your bank as soon as you can. We’re here to help,” group executive for personal banking Rachel Slade said.
“Customers continue to build and flex their ‘budgeting muscle’ and they’re responding to cost of living pressures by reducing their spending on dining out, fuel and leisure travel.
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“We’re seeing more customers using budgeting tools than ever before – an important sign that more Australians are closely engaged with their finances.”
The move comes ahead of NAB’s reporting of its annual results tomorrow.
The remaining big four banks are yet to pass on the hike, but are expected to do so in the coming days.
For the average Australian borrower with a $500,000 mortgage, the cash rate rise means an additional $76 per month in repayments, and an extra $1210 since rates began rising in May of last year.
