NAB is the latest big bank to increase fixed home loan rates, following moves by Westpac and Commonwealth Bank over the past week. But there is still plenty of competitive pressure in the mortgage market, as the large number of variable rate cuts show.

NAB increase its owner occupier P&I two-year rate by 25 basis points, its three-year rate by 51 bps, its four-year rate by 30 bps and its five-year rate by 10 bps. Investor rates went up by as much as 45 bps. Interest-only rates have also gone up.

NAB’s owner occupier rates now range from 2.34 per cent for two years to 3.09 per cent for five years.

In the variable rate market, ING Bank cut the rate on its Mortgage Simplifier loan by 25 bps to 1.99 per cent. The loan is available to owner occupiers paying principal and interest.

ING joins ANZ, AMP, Aussie, Auswide Bank, Bank of Melbourne, Bank SA, St George Bank and Suncorp Bank in cutting variable rates over the past couple of weeks.

With all the recent movement there is a wide dispersion of rates. According to Canstar, the lowest standard variable rate is currently 1.88 per cent and the highest is 5.29 per cent. 

The lowest three-year fixed rate is 1.79 per cent and the highest is 3.63 per cent.

All the big banks have made rate moves over the past week. ANZ reduced variable home loan rates, with bigger cuts for borrowers on lower loan-to-valuation ratios.

For owner occupier borrowers with LVRs of less than 70 per cent, ANZ has cut the rate on its Simplicity Plus principal and interest loan by 43 basis points to 2.29 per cent.

For owner occupiers with LVRs between 70 and 80 per cent, the Simplicity Plus rate has been cut 23 bps to 2.49 per cent.

NAB dropped variable owner occupier rates on its Basic Variable loan by 40 bps to 2.29 per cent for loans with LVRs up to 80 per cent and by 5 bps to 2.99 per cent for loans with LVRs between 80 and 95 per cent.

Westpac increased fixed home loan rates for three, four and five-year terms. It increased its three-year rate by 21 basis points for owner occupiers paying principal and interest and by 20 bps for investors. It increased its four and five-year rates by 10 bps for owner occupiers and investors.

Commonwealth Bank increased fixed rates by up to 50 bps.