NAB hikes variable rates after saying they wouldn't less than 20 weeks ago

NAB hikes variable rates after saying they wouldn't less than 20 weeks ago
NAB hikes variable rates after saying they wouldn't less than 20 weeks ago

NAB has caved to funding pressures and hiked home loan rates just months after they said they were keeping their variables rates on hold.

NAB chief Andrew Thorburn said on September 10, “we are listening and acting differently”.

“We need to rebuild the trust of our customers, and by holding our NAB standard variable rate longer, we help our customers for longer,” Mr Thorburn he stated.

NAB is lifting rates by 0.12 per cent for owner occupiers paying principal and interest, and 0.16 per cent for investors and interest only customers, effective 31 January 2019.

The average NAB customer on a discounted variable rate will now pay $25 extra per month, almost $300 annually.

NAB hikes variable rates after saying they wouldn't less than 20 weeks ago

(Source: RateCity.com.au)

RateCity.com.au research director Sally Tindall said, “NAB tried to put their customers first, but it appears profit has won out in the end."

“NAB’s previous decision to keep rates on hold was designed to win back the trust of their customers. It was also a play to get new customers in the door."

“The strategy appears to have worked. In October 2018, NAB surpassed ANZ in terms of home loan market share. They now have the third largest home loan book, according to APRA data."

“Already this year we’ve seen BoQ and Virgin Money hike rates due to cost of funding pressures. Now that NAB has hiked as well, others are likely to follow in its shadow,” she concluded.

NAB hikes variable rates after saying they wouldn't less than 20 weeks ago

(Source: RateCity.com.au)

Tags: 
Interest Rates Nab

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