National Australia Bank has lifted home loan rates by as much as a quarter of a percentage point, blaming rising funding costs and increased regulation.

Key points: NAB's investor rates go from 5.55pc to 5.8pc; owner-occupier rises from 5.25 to 5.32pc

NAB's investor rates go from 5.55pc to 5.8pc; owner-occupier rises from 5.25 to 5.32pc Investors with $300,000 30-year loan to pay $47 per month more, owner-occupiers $13 per month

Investors with $300,000 30-year loan to pay $47 per month more, owner-occupiers $13 per month NAB offers 29-basis-point discount on two-year fixed home loans to first home buyers

The bank's standard variable mortgage rate for owner-occupiers will increase by 7 basis points to 5.32 per cent per annum, effective next week Friday.

NAB said someone with a $300,000 loan on a 30-year term would be paying an extra $13 a month as a result of this rate increase.

However, investors face a much steeper increase in repayments, with NAB's variable rate for them jumping from 5.55 per cent to 5.8 per cent, also effective Friday week.

That would cost an investor with a $300,000 loan on a 30-year term an extra $47 each month.

The bank has blamed higher funding costs, in part due to the bank regulator APRA's moves to crack down on strongly growing investment lending, as the reason for the rate rises, which coincided with a US official interest rate rise earlier in the day.

"The difference between what we charge and how much it costs us to fund a mortgage remains under pressure, with intense competition, increasing regulation, and elevated funding costs," said NAB's chief operating officer Antony Cahill in a statement.

"By making a series of changes, both up and down, we are seeking to balance these across our entire mortgage portfolio."

The downward move in rates is a record low 3.69 per cent two-year fixed rate for first home buyers, priced 29 basis points below the two-year fixed rate being offered to other owner-occupiers.

"This is the lowest home loan rate ever offered by NAB, and it will help Australians entering the property market for the first time to achieve their home ownership dreams," Mr Cahill said.