CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

NAB holds variable home loan rates at 5.24 %

National Australia Bank (NAB) has announced it will hold standard variable home loan rates at 5.24%, despite predictions that it would follow in the footsteps of the big banks.

IG Analyst

Publication date : 2018-09-10T02:08:39+0100

NAB

Source: AAP

The decision comes after both Commonwealth and ANZ banks announced last week, they would increase their home loan rates, following on from Westpac’s decision to hike rates by 5.38%.

NAB’s move to hold their rates took analysts by surprise, many predicting the bank would crumble under pressure, and follow suit.

NAB CEO Andrew Thorburn says the bank is listening to its customers and “doing things 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 said.

NAB has an estimated 930,000 customers with home loans, with average loan at $300,000. According to NAB, had they increased rates by 15 basis points, the average home loan customer would have to pay an extra $28 each month, or $336 a year on their repayments.

The almost $30 extra dollars a month proved too high for bank officials, saying they're putting customers first.

‘By focusing more on our customers, we build trust and advocacy, and this creates a more sustainable business.’ Mr Thornburn said.

NAB has said it will continue to assess its rates, and review current market conditions, whether funding costs change over time.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.