National Australia Bank, the country’s top lender, increased variable mortgage rates by 0.09 percent on Monday, citing economic uncertainty and funding costs.
The move takes NAB’s variable interest rate up to 7.31 percent, the lowest of Australia’s four major banks. NAB has vowed to keep its rate the lowest in 2012.
“These decisions are never taken lightly. We know that current economic uncertainty is impacting our customers, which is why last week we made the commitment to maintain the lowest SVR of any of the major banks throughout 2012,” said Lisa Gray, Group Executive of NAB’s personal banking division.
Commonwealth Bank, ANZ and Westpac have all raised their rates after the central bank kept rates on hold last week.