(8 February 2012 – Australia) The mortgage rate war just got a whole lot better for home owners with National Australia Bank (NAB) pledging to offer the lowest mortgage rates of the big four for the whole of 2012.The announcement, ahead of the Reserve Bank of Australia (RBA)’s interest rate decision, puts pressure on its rivals who are being pressured by rising funding costs, slowing credit growth and demand from politicians that they pass any RBA rate cut in full.
“We acknowledge a tougher world economy is presenting uncertainty for many customers,” said NAB group executive of personal banking Lisa Gray.
“We also know that in facing economic challenges, Australian families want greater certainty. NAB will provide that certainty for customers by announcing our ongoing commitment to having the lowest SVR (standard variable rate).”
Gray said the pledge applied to “all existing and new home loan customers on NAB’s standard variable rate products.”
Currently NAB offers a standard variable rate of 7.22 percent, below ANZ Bank’s 7.30 percent. Commonwealth Bank (CBA) offers a similar loan at 7.31 percent, while Westpac charges 7.36 percent, according to Canstar.
NAB this morning posted a 7.7 percent increase in first-quarter profit of A$1.4 billion, up from A$1.3 billion a year ago.