Westpac, NAB Raise Home Loan Rates More Than RBA

Westpac and NAB have joined the other two major banks in raising home loan rates more than the Reserve Bank.

National Australia Bank raised its standard variable mortgage rate by 43 basis points, Westpac lifted its standard variable rate by 35 basis points.

While Westpac's increase is the smallest of the Big Four, it still has the highest standard variable mortgage rate. The standard variable mortgage rates for the big four banks are:

National Australia Bank also said it would abolish early exit fees on new and existing home loans. Westpac has made no announcements on whether it would follow ANZ and NAB by cutting exit fees ahead of a government crackdown, although it is offering a 40-basis-point discount on its three-year fixed loans, as is ANZ.

Westpac's rate hike takes effect from Tuesday, while the NAB's rate rise will take effect on Monday - but NAB's removal of early exit fees will not take place until December 6.

All banks raised mortgage rates more than RBA, however deposit rates for savings accounts and term deposits will be raised no more than RBA, i.e. only by 25 basis points.

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Published on November 11-th, 2010 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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