National Australia Bank (NAB) raising lending rates

National Australia Bank are all set to increase their lending rates, NAB will increase the rate by 0.15 percent to 9.61%. This move by the bank will not be a popular one, as mortgage payment will now be more, especially for those with high mortgages.

The increase in lending rates now makes Nab the third highest, behind St George who’s whose standard variable loans is 9.67% and ANZ Bank who’s rate is 9.62%.

National Australia Bank has blamed the higher cost of wholesale funding for the recent hike in interest rates. Ahmed Fahour, NAB CEO said ”While this change still does not recoup the full impact of increased wholesale funding costs, we have a responsibility to balance the needs of customers and shareholders.”

To give you an idea of how much extra this 0.15 percent increase will make, say you have a loan for $300,000 loan over 25 years, then you will see a monthly mortgage payment increase of $31.

These rate increases could not come at a worse time, not only are people having to pay more on their mortgage payments, but with increasing fuel and food costs, things are set to get a lot tighter in the average household.

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