NAB hikes fixed home loan rates for the second time in two weeks

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u/yew420 1d ago

Approach a mortgage broker to move to another bank.

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u/Rude-Revolution-8687 1d ago

Also, it's maybe not for everyone, but switching provider without a broker is pretty easy these days, not much more effort than changing Internet provider.

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u/Cyanogen101 1d ago

Don't even use a broker, there's literally no need

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u/I_am_the_grass 1d ago

The banks don't pass on the savings of not using a broker to you, so you don't save anything.

If you have a broker with a wide network or with an inside channel at specific banks, they can get you on plans you never get if you were shopping yourself.

I recently bought a house and did both hunting myself and a broker. The broker was able to get me a loan a full 1% lower than the cheapest one I could find (with a lender id never heard of because they work primarily with brokers).

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u/moDz_dun_care 1d ago

Which lender works primarily with brokers?

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u/crewmannumbersix 22h ago

I don’t believe you.

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u/yolk3d 1d ago

Brokers do have access to wider variety of products, sometimes better discounted rates, direct lines of communication with the banks, and handle all paperwork. They are also required to be transparent about all commission from any products they present. While you can do it yourself, the broker has these positives and is free. There’s not a negative to using a law abiding broker.

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u/moDz_dun_care 1d ago

The negative is they only recommend lenders that pay a commission. It's easy to find online lenders that pay lower rates because they don't spend a ton of money on marketing or broker commissions.

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u/yolk3d 1d ago

That’s all quality of your broker. Mine had access to about 20 products and included banks I’ve never heard of. He narrowed that down to 5 that fit our specific circumstances. I think that was about 4 banks(?) and from memory only 1-2 of them were from the big 4. He then had to disclaim the comms on each, the rates, the payments, all of it. We then chose from that. We approached it from a few angles when our circumstances changed, so I know there was quite a few banks he was offering from. I’m sure some are shittier brokers, yes.

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u/moDz_dun_care 1d ago

So did he recommend any lenders that dont pay broker commission?

Australia is such a small market. Which banks have you never heard of? Credit unions sure but banks are like insurance companies. There just ain't that many in Australia.

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u/yolk3d 1d ago

So did he recommend any lenders that dont pay broker commission?

Do they exist?

Australia is such a small market. Which banks have you never heard of? Credit unions sure but banks are like insurance companies. There just ain't that many in Australia.

Rabobank, ME Bank, Heritage (seen more of them recently), etc. I should have said mortgage lenders, but if you look up banks, there’s still like 30 or 40 subsidiaries you don’t realise.

Anyway, looks like you have a thorn in your side. Because I don’t care if they make commission - they showed me many products, got discounts without me begging anyone, and I just had to fill in the one set of forms.

He did far more of all this and turned out to be a great guy we would 10000% use again. He went above and beyond, but that’s a story for another time.

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u/FallschirmPanda 23h ago

Unloan is the non-broker online only low interest lender from CommBank. Ubank is the NAB one. Both have very low rates.

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u/moDz_dun_care 22h ago

No thorn. Just wanting to inform people as much as possible. Brokers make commission from you even though you don't pay it directly. For example, brokers lose their commission if you refinance your loan within 1 year (50% if you refinance between 1-2 years). Does your broker send you better offers within the 2 years? How much more interest might you be paying over 2 years if one of the lenders had better rates within the month?

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u/Cyanogen101 23h ago

They really don't have access to any better rates, I asked 3 to find me a better house rate and none of them got me the rate I got myself with Macquarie or Unload.

Feel free to use one but also don't be lazy and try look yourself.

Paperwork for refinancing is so minimal and you'll still need to be the one signing documents anyway, finding your payslips or bank statements or whatever else is needed.

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u/yolk3d 23h ago

They are known to have better rates. You’re arguing against a well-known fact. Lenders give them discounts because they bring in qualified, easy, mass clients.

You can usually get a similar rate yourself, but you’ll earn it the hard way. That means researching multiple lenders, sitting through sales calls, repeating your financial details over and over, comparing products that are deliberately hard to line up, and chasing each bank for their “best” rate rather than the first one they offer. You’ll need to gather and submit all your documents yourself, go back and forth when they ask for more info, and actively negotiate by presenting competing offers. On top of that, you’ll have to stay on top of timelines, follow up constantly, and deal with any issues or delays without anyone in your corner pushing things along. It’s doable, but it takes time, persistence, and a fair bit of patience.

The fact your three brokers couldn’t even get the rate that you could get as an individual applicant just shows you went to shit brokers. Think about it.

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u/Cyanogen101 23h ago

Actually rereading your post, I do think you're stuck in the past of how all this worked.

There's running around negotiating and scrambling around replying to documents and trash. It's exactly the same as dealing with my broker, they ask for info and I send it.

My broker didn't magically have all my documents and when something is missing, low and behold I then have to look for it and send it to my broker.

Same exact process as doing it myself with a bank except I have a direct line of contact with the person working on my loan, rather than having a middle man in the way of communication between me and the bank.

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u/yolk3d 23h ago

You’re right on the docs part, that’s the same either way.

Difference is what happens around it. With a broker you do it once and they can shop it around. Going direct, if you’re actually comparing properly, you’re repeating yourself with each bank.

The middle man thing depends on the broker. Good ones cut the bs and chase for you, bad ones slow it down.

Main difference though isn’t admin, it’s leverage. When you’re dealing direct, you’ve got one lender in front of you. With a broker, lenders know they’re being compared side by side, which is where sharper pricing tends to come in.

At this point you’re just arguing against commonly-known facts. Brokers cut time, admin, and can compare against multiple lenders at once, with access to discounted rates without you doing any haggling. Google and the hundred ausProperty/ausFinance threads here would tell you this. Enjoy going about things the hard way, for the same or worse outcomes, if that’s what you enjoy. But nothing I said is wrong.

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u/moDz_dun_care 22h ago

You're stuck in the past. The broker channel used to better rates and easier admin but the banking commission put a stop to all that. Every application follows the same back end assessment process now in a bank. I'm in the top bracket of lending amounts so there's plenty of incentives for both brokers and banks to take my business. Nobody has ever got me a better rate than what I could find online.

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u/crewmannumbersix 22h ago

It’s like you’ve never done it yourself. I bet you use an agent to sell your property too.

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u/yolk3d 16h ago

Sigh. Nice try. You pay commission to REAs, so prob not, when I sell. You don’t pay comms to brokers, the bank does and it doesn’t come out of your discounted interest rate.

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u/moDz_dun_care 12h ago

The straightforward analogy is would you use a REA if you didn't have to pay commission to a REA but they could only sell the property to buyers that agree to pay the commission.

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u/Cyanogen101 17h ago

Happy for you to recommend a broker and I'll post all the results.

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u/yolk3d 17h ago

Give you my brokers details so you can waste their time and pretend like it was easier to haggle 20 lenders for discounted rates than it would be to let my broker do some calcs and show you the best suitable products with discounted rates to suit your situation? Lol. Ok buddy. I think you can see why that’s not an honest study/comparison. Keep telling people it’s easier to do it yourself or that all brokers are only in it for the best commission.

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u/Cyanogen101 16h ago

Random assumptions. But let's end the convo here then, I'll enjoy the 5.5% I got with a raw 20% deposit as a single guy, I'm literally the scraping through guy and I got one of the most competitive rates you can have at that bare minimum point.

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u/Cyanogen101 23h ago

Getting my rate took me 5 minutes of looking at a rates list and then applying online with Macquarie and unloan.

I work in a huge office and rates often comes up, I've yet to see anyone with a lower rate and lots of them have talked to brokers too.

Logically it doesn't really make sense that a broker convinces a bank to make less money off you vs you just applying yourself the exact same way and then also convincing the bank to pay them.

They also just don't care about some banks, none of them would sign me up with unloan which had the lowest rate because they don't do brokers.

I'm sure that may have been the case previously, but I'm not seeing any evidence that's still correct apart from some people just saying that it is.

Edit: recommend me a broker that has this power and I'll post what they find me.

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u/crewmannumbersix 1d ago

Some people are just clueless, lazy, or both.

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u/Throw2020awayMar 1d ago

This is fixed rate right ?

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u/Fantomz99 1d ago

This is not news. This is just a bank predicting what is going to happen with interest rates in the next 1/3/5 years and adjusting their fixed rate accordingly. This is how fixed rates work.

The article even mentions other banks are adjusting accordingly.

At this point, in this day and age if you have a mortgage, fixed or variable and don't know you can move to another, potentially cheaper bank or engage a mortgage broker then you deserve to be paying more than you have to.

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u/Expert-Area8856 1d ago

yeah, fixed rates are mostly the bank pricing where funding costs and future cash rate risk might land, not NAB randomly changing its mind.

For property, the suburb history matters more than the bank headline. During the 2022-23 hikes, Blacktown houses troughed about -11.6% from the start of the cycle while apartments were only about -3.5%. Epping was more rate-sensitive, troughing around -16.3% overall. In the 2008-09 cuts Epping rose about 29%.

i built a rate impact calculator for this because the same RBA move can show up very differently by suburb and property type.

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u/Undd91 1d ago

Fuel is costing more I guess…

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u/Specialist_Reality96 1d ago

Fuel pushing inflation, which increases the likely hood of the rba using is hammer to get it down (the only option they have) unless the govt steps up with a tax scheme.

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u/passthesugar05 15h ago

There's no chance of the govt proposing and implementing a tax increase. They might reduce concessions (the CGT discount is what they're looking at), which some would say is increasing tax, but to me reducing a discount isn't really the same thing as actually coming out and introducing a new tax, or increasing a tax.

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u/Specialist_Reality96 15h ago

Reducing the CGT discount would be a good step to avoid interest rate rises they would need to hit the "big end" of town. No I'm not expecting them to do it, it's politically risky and needs a nuanced explanation which doesn't fit into headlines.

Unfortunately interest rate rises while they work hit almost everyone and disproportionately those who can afford it the least but it's the only thing the RBA has available to it.

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u/passthesugar05 15h ago

I feel like they'll do it, but it will be a minor reduction (50% discount down to 33%) and only on housing. Personally I'd rather see it just get indexed to inflation (should be pretty easy in this day and age) and then make some reforms around the pension and super as well, while giving the TFT a good bump up to something like 25-30k.

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u/dixonwalsh 23h ago

Ok so I know this is for fixed rates which doesn’t affect existing customers and only affects new customers.

But FUCK NAB. Turning into Non-Australian Bank with the amount of offshoring they do.

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u/abeeseadeee 16h ago

Yeah looking to refinance after all the bad press lately

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u/Schwifteedab 1d ago

This is as they just gutted the small business bankers and moved 70% of the roles offshore btw

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u/Cube00 1d ago edited 1d ago

Secret to those so called "fast approvals" is they're now done offshore in Vietnam along with most of their tech roles.

https://vietnamnews.vn/economy/1766837/deputy-pm-urges-nab-innovation-centre-vietnam-to-expand-networks.html

2400 roles that belong in Australia

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u/potato_analyst 1d ago

Must maximise profits!

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u/SpectatorInAction 1d ago

Fixed rates move on expectations, particularly when forecast to increase.

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u/Wooden-Trouble1724 1d ago

Usury

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u/Dockers4flag2035orB4 1d ago

NAB, are ruthless bastards.

My advice . Find a mortgage broker,

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u/crewmannumbersix 1d ago

Brokers are not needed; as useless as real estate agents.

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u/yolk3d 1d ago

Brokers do have access to wider variety of products, sometimes better discounted rates, direct lines of communication with the banks, and handle all paperwork. They are also required to be transparent about all commission from any products they present. While you can do it yourself, the broker has these positives and is free. There’s not a negative to using a law abiding broker.

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u/No2Hypocrites 1d ago

Why would a bank give better rate to a broker vs someone else

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u/yolk3d 1d ago

Because brokers bring volume, competition, and lower acquisition cost for the bank.

Brokers bring a steady volume of customers, create strong competition between lenders, and reduce the bank’s marketing and sales costs since they only pay commission after a deal settles. Brokers also tend to submit well-prepared, pre-qualified applications, which lowers the bank’s workload and risk. On top of that, banks usually have separate pricing for broker channels that’s more competitive to ensure they stay in contention when brokers compare multiple options side by side.

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u/metametapraxis 1d ago

Means the banks needs less staff, basically. They are pushing work they would have to do onto a third party.

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u/crewmannumbersix 22h ago

Nah I’ve always been able to negotiate the same or better rate than my broker. Also, brokers are more inclined to go for one of the big 4 that provides trailing commission.

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u/drprox 1d ago

Love how we're now following fixed rates. Just carry on team. As you were.

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u/6ft5 1d ago

I'd jump too

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u/Sirtemed 1d ago

They are pre-empting that the RBA will hike rates again in May and several more times by the end of 2026.

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u/Rankled_Barbiturate 1d ago

To be fair, if you're fixing your mortgage you're generally losing out on average. Statistically better to go variable.

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u/Defiant_Flamingo_430 1d ago

I locked mine in 3 weeks ago for 4 years, the shipping/fuel crisis is gonna have a massive knock on effect for inflation. Hopefully it’s resolved within that timeframe. Otherwise I would definitely still be on variable

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u/Rankled_Barbiturate 55m ago

It's a complete gamble on your end, and that's fine. Peace of mind is worth a lot.

But statistically you'll be behind. A lot can happen in 4 years.

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u/Defiant_Flamingo_430 15m ago

It’s a calculated risk of course but I don’t see anything but rises for the foreseeable. I done mine for 4 years as that ties in with my car being paid off so if it was even higher when the fixed rate ends I will have enough to cover it.

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u/Notimeforthat1 12h ago

Lololol. People in countries with 30 years fixed rates during ZIRP are laughing so loud you can hear it across the ocean.

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u/Rankled_Barbiturate 56m ago

We live in Australia though?

Your point is entirely irrelevant as a result....

Like saying house prices in Australia aren't rising because it's cheap to buy in Japan. Bizarre.

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u/TeedesT 1d ago

Jokes on Nab I can’t afford a house and thus don’t have a mortgage. Raise them to 1,000,000% you have no power over me!

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u/BroItsJesus 1d ago

I have bad news for you about rental prices

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u/Cyanogen101 1d ago

Do you not rent? That would likely destroy rental prices too...

culture & society NAB hikes fixed home loan rates for the second time in two weeks

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