NAB’s mortgage broker product HomeSide beats big four banks as best post-GFC offering: new index
In the last five years since the GFC borrowers would have been better off taking out a HomeSide home loan than a mortgage through one of big four banks, a new lender index has found.
HomeSide is NAB’s home loan product offering sold solely via mortgage brokers.
HomeSide currently has an advertised variable rate of 6.16% and three-year fixed-rate of 4.99%.
It ranks first on the new Australian Lenders' Index compiled by mortgage broker 1300HomeLoan.
The index currently ranks six lenders: Commonwealth Bank, NAB, Westpac, ANZ, Homeside (a division of NAB), and St George Bank (a division of Westpac).
The current rankings as of June 2013 are:
- Homeside - NAB subsidiary
- National Australia Bank
- ANZ
- Commonwealth Bank
- St George
- Westpac
The index measures the interest rate performance of Australia's major lenders in the residential home loan market, across a range of industry metrics over a five year period dating back to March 2008.
Metrics include the average size of lender interest rate spread to RBA cash rate and the number of movements in line with the RBA cash rate.
It found that HomeSide has been providing consistently the best rates over the past five years with NAB ranking second and Westpac at the bottom of the list.
A Homeside customer could save $31,980 over the life of their loan relative to the worst performing lender in the index – Westpac.
This is based on a borrower taking out a $300,000 home loan with a standard variable professional pack interest with a relatively high 30% deposit.
"NAB's Homeside is currently delivering the best variable home loan products among the major lenders," says 1300HomeLoan managing director John Kolenda.
"The Australian Lenders' Index has also found that Homeside has been providing consistently the best rates over the past five years," he says.A full break-down of the index methodology can be found at www.australianlendersindex.com.au.