7 June 2011
The Commonwealth, Westpac and ANZ banks have forced Australian homeowners to pay hundreds of millions of dollars more than they should in mortgage repayments, National Australia Bank Group Executive for Personal Banking Lisa Gray said today.
This month, NAB will mark the second anniversary of offering the lowest standard variable home loan rate of the major banks in Australia.
"While NAB's second anniversary for offering the lowest standard variable home loan rate is an important number for us, some far bigger numbers will be more important to Australian home loan customers," Ms Gray said.
"Over the past two years, NAB home loan customers have paid $320 million less in home loan interest than if NAB had matched Westpac's higher standard variable rate.
"Over that time, NAB home loan customers have paid $160 million less in home loan interest than if NAB had matched Commonwealth's higher standard variable rate.
"And in that time NAB home loan customers have paid $210 million less in home loan interest than if NAB had matched ANZ's higher standard variable rate.
"These numbers make a clear case. Australians can save substantial dollars and make themselves better off by switching to NAB."
Ms Gray said that NAB firmly believed that customers should pay a fair price for the banking products and services they buy. Ms Gray said this is something we are striving for at NAB and asked if the other banks could say the same.
"This is one of the reasons we broke up with the other banks. Our commitment to our customers is to be competitive, and we think that our track record speaks for itself. A NAB customer with a $300k homeloan is $47 a month better off, compared to those whose bank charges the highest rate," Ms Gray said.
More and more Australians were voting with their feet by switching to NAB and taking advantage of the lowest standard variable home loan rate of the major banks.
"So it's no surprise to us that we have seen a significant increase in the number of CBA and WBC customers that have switched to NAB to access our lower rate – 43% and 37% respectively since we ‘broke up' with the other banks.
"In addition, NAB has recently removed around 60% of home loan fees for NAB customers, because we know what is good for our customers is good for our business. For example, our home lending is currently growing at double the rate of the industry.
"We are absolutely committed to being competitive and will continue to give customers reasons to switch to NAB."
NAB continues to pay the Early Exit Fee for customers from other banks looking to take advantage of its competitive offer.
"We believe that Australian should not be disadvantaged if they want to access NAB's lower standard variable rate. So where banks like CBA or Westpac use early exit fees to try and stop their customers accessing NAB's lower rate, we continue to help them switch to NAB by paying their $700 mortgage early exit fee for them," Ms Gray said.
Last week NAB was named Money Magazine's Home Lender of the Year.
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For further information:
Sharon Keller M: 0420 598 994
Meaghan Telford M: 0457 551 211