News: UPDATE 1-National Australia Bank raises variable, investors home loan rates

(Adds action by CBA, industry context)

National Australia Bank (NAB) on Thursday said it was raising rates on variable home loans for owner occupiers and investment properties, blaming rising costs and intense competition.

The bank lifted its variable rate for owner occupiers to 5.32 percent from 5.25 percent, and rates on residential investment home loans to 5.80 percent from 5.55 percent, effective March 24. Official cash rate stands at 1.50 percent.

"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 chief operating officer Antony Cahill.

The move comes after a top Australian central banker said regulators were ready to impose tighter lending restrictions to head off risks in the country's red-hot housing market.

Lending to speculative property investors has accelerated in recent months while home prices in Sydney and Melbourne - Australia's two biggest cities - have climbed to new highs.

The danger of a debt-fuelled bubble in housing is a major reason the central bank has resisted pressure to further cut interest rates, already at record lows of 1.5 percent.

On Wednesday, Commonwealth Bank of Australia (CBA), the nation's largest mortgage provider, and its subsidiary Bankwest said they will raise interest rates and toughen lending conditions for investment property buyers.

Westpac and ANZ declined to comment on the future course of rate action, while CBA could not immediately be reached.