NAB is the latest of the big four banks to announce that it will pass on RBA rate hikes in full to variable rate mortgage customers, effective May 12.
NAB Variable Rates for Homeowners
Calculations are based on a $500,000 loan over 25 years.
| Old tariff | New tariff | Increase in refunds, $500,000 | |
| standard-variable |
4.52% |
4.77% |
$72 |
| Updated variable |
3.67% |
3.92% |
$68 |
| Lowest variable |
2.19% |
2.44% |
$62 |
Source: RateCity.com.au. Repayments are for a homeowner paying principal and interest with a $500,000 loan over 25 years. Rates effective May 13.
Big four banks react to RBA’s 0.25% hike
| Variable increase in mortgage loans | New lowest variable rate | Savings Hikes | Effective date | |
| ABC |
0.25% |
2.44% |
To confirm |
May 20 |
| Westpac |
0.25% |
2.34% |
Up to 0.25% |
May 17 |
| NAB |
0.25% |
2.44% |
Up to 0.25% |
May 13 |
| ANZ |
0.25% |
2.44% |
To confirm |
May 13 |
Source: RateCity.com.au. The lowest rates are for homeowners who pay principal and interest. LVR requirements apply.
NAB raises savings rate by 0.25%
NAB also announced that it would pass the entire hike on to its 1.3 million customers with a Reward Saver account. The rates for his other savings accounts remain unchanged.
| Maximum current rate | New maximum rate | |
| NAB Reward Saver |
0.25% |
0.50% |
| NAB iSaver |
0.30% for 4 months then 0.05% |
No change |
| NAB Retirement Account |
0.01% – 0.25% |
No change |
Source: RateCity.com.au. Conditions apply for the maximum fare.
RateCity.com.au research director Sally Tindall said: ‘NAB followed the pack and raised its variable mortgage rates by 0.25%.’
“As expected, the big four banks acted in unison and passed on the RBA hike in full to their millions of variable home loan customers,” she said.
“Australians with a home loan should now brace themselves for more pain as this is just the start of a series of hikes to come.
“So far only Westpac and NAB have increased deposit rates, but not across the board, with only some accounts increasing by 0.25 percentage points.
“NAB and Westpac, like other banks, are full of cash. As a result, banks are not willing to pass on the increase to all savings customers.
The latest APRA statistics for March show Australian households have a total of $1.26 trillion in the bank, an increase of more than $272 billion since COVID.
“CBA and ANZ now have the opportunity to step in and pass on a rate hike to all of their savings customers, who have had pitiful rates for far too long.
“Serious savers should know what their bank intends to do. If your savings rate doesn’t go up, shop around and see if you can get a better deal elsewhere,” she said.
Big Four Banks: Current Contingent Savings Rates
| Bank | Account | Maximum rate |
| ABC | GoalSaver |
0.25% |
| Westpac | Life |
0.50%* |
| NAB | reward saver |
0.50%* |
| ANZ | progress saver |
0.15% |
Source: RateCity.com.au. Conditions apply for the maximum fare. Westpac rate effective May 17. NAB tariff effective May 13.
Household deposits in banks: APRA
| Feb-2020
(pre-COVID) |
Now (March 2022) | Change since COVID-19 | |
| Deposits per household |
$989.2 billion |
$1.26 trillion – record |
$272.4 billion 28% |
Source: RateCity.com.au. Deposit data published by APRA, April 29, 2022.
Find out who has moved on RateCity.com.au’s RBA rate tracker
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