Australian homeowners are facing higher mortgage repayments after the National Australia Bank became the third major lender to hike its standard variable home loan interest rates.

NAB has announced a 0.17 percentage point raise to 5.6 percent to take effect from November 12.

The move comes on the heels of the Commonwealth Bank’s announcement on Thursday to push up its rate 0.15 percent to 5.6 per cent, and Westpac’s 0.2 per cent lift to 5.68 percent last week.

The lifts put pressure on the last remaining major lender ANZ, to take similar action.

A majority of the big four have raised their rates now since Westpac triggered this latest spate of hikes on October 14.

NAB followed the other banks in blaming the increase on tougher market conditions and regulations.

All of the banks have undertaken billion dollar capital raisings in the past few months to build capital to absorb possible losses and to secure their business.

NAB raised $5.5 billion in May.

“There are a range of factors that come into consideration in interest rate decisions. The home loan market is dynamic, with multiple changes being seen across the industry,” NAB group executive for personal banking Gavin Slater said.

“Today’s decision has not been easy, but we believe this is right decision for the long term.”

NAB’s move fuels further speculation of a Melbourne Cup Day rate cut by the Reserve Bank next month.

Treasurer Scott Morrison said banks were entitled to make their own commercial decisions.

“That is entirely a matter for them to explain to their customers about why they’re doing this,” Mr Morrison told reporters in Sydney on Friday.

“There’s no mandatory requirement on behalf of the government to pass on costs to consumers.

“At the end of the day, customers can choose where they want to bank and shop and buy their milk.”