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NAB announces variable rate changes

by Huntley Mitchell7 minute read

NAB has become the third major bank to raise interest rates in response to industry concerns surrounding investor lending growth.

The bank will increase variable rates on its interest-only home loans and line of credit facilities by 29 basis points.

In a media statement released yesterday, NAB Broker general manager Steve Kane said the decision was in response to industry concerns about the pace of investor growth and a focus on delivering prudent lending practices into the Australian housing market.

“We operate in a highly regulated market, and lenders are making a range of changes to meet their obligations,” he said.

“We continually review our lending practices and remain committed to maintaining prudent lending standards and fulfilling our regulatory obligations.”

Mr Kane said brokers are in a prime position to support customers through these changes and provide them with the advice they require.

NAB’s announcement comes after CBA and ANZ raised interest rates for investors while reducing fixed rates for owner-occupiers.

[Related: APRA reins in mortgage lending by banks]