Powered by MOMENTUM MEDIA
Investors win as major bank undercuts competitors with loan changes
finance-advice
1 minute read

Investors win as major bank undercuts competitors with loan changes

Investors win as major bank undercuts competitors with loan changes

by Reporter | July 23, 2019 | 1 minute read

NAB has undercut some of its competitors with changes to its mortgage serviceability terms, making it easier for buyers to secure finance from this month onwards.

NAB
NAB
by Reporter
July 23, 2019

NAB is the last of the big four banks to lower its interest rate floor in response to APRA loosening its guidelines for loan serviceability.

The big four bank has lowered its interest rate floor to 5.5 per cent and increased its interest rate buffer to 2.5 per cent. This will be effective for all new home loan applications from 5 August.

This means NAB has matched ANZ’s rate floor of 5.5 per cent. NAB has undercut CBA and Westpac, which both dropped their interest floor rates to 5.75 per cent.

“NAB welcomes the updated APRA guidelines on home lending serviceability. We believe now is the right time to change the approach to how the affordability rate floor is determined, given the continuing low interest rate environment,” said NAB’s chief customer officer of consumer banking, Mike Baird.

Advertisement
Advertisement

[email protected] 

NEWSLETTER
Be the first to hear the latest property investment insights
 
share the article

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.