National Australia Bank has announced it is raising variable home loan interest rates for owner occupiers and residential investors.
The changes are due to come into effect from 31 January, 2019.
It will see owner occupiers making principal and interest repayments hit with a 0.12% increase, while owners occupiers paying interest-only loans will see a 0.16% rise.
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According to NAB, an owner-occupier with a $300,000 home loan on a 30-year term will now pay an additional $22 each month on their principal and interest repayments, or $264 each year.
Those with an owner occupier interest only variable rate home loan will pay an additional $40 each month on their home loan repayments, or $480 each year.
NAB’s new Tailored Home Loan variable rates:
NAB Chief Customer Officer for Consumer Banking, Mike Baird, said the decision to increase rates was not taken lightly.
“Our decision to hold our Standard Variable Rate since September last year, the only major Australian bank to do so, has led to around $70 million remaining in the households of more than 930,000 NAB customers,” Mr Baird said.
“We wanted to reward our existing customers for their loyalty and held off as long as we could despite being subject to the same increasing wholesale funding costs and market pressures as other major lenders.
“We have been deliberate in our approach to limit the impact on owner occupier borrowers by keeping their rates as low as possible to encourage both new and existing customers to pay down their loan sooner.”
More information on NAB’s latest announcement can be found here.