NAB home loan borrowers' payments typically ahead by 13 months

Figures from NAB confirm its customers ­continue to maintain previous ­payments and pay down debt faster during the current low interest rate period.

Customers paying back more than the minimum are ahead by an average of 13 months, compared with 12 months a year earlier, NAB told the Australian Financial Review.

NAB has about 16% of the mortgage market.

Owner-occupiers accounted for 70% of customers who were ahead, with 16% of investors and 14% being first home buyers.

The NAB executive general manager of lending and deposits, Antony Cahill, said the figures showed customers were taking advantage of record low interest rates by putting away extra income.

“These are themes that point to the Australian consumer being a little bit more careful, a little bit more prudent in terms of understanding debt and ensuring they keep that under control,” he told Fairfax Media.

NAB also said consumers were paying off credit card debt faster, with accounts paid in full up 6% in the last year.

Of the loans that were ahead on payments, 32% are held in Victoria, followed by 31% in New South Wales and 21% in Queensland.