National Bank of Australia raises interest rate on Housing loans (Pioneer Sun Photo)
The National Bank of Australia, (NAB), finally announced that it would raise the floating rate.
According to the Pioneer Sun, the National Bank of Australia finally took action two months after rivals (CBA), Australia and New Zealand Bank (ANZ) and Western Pacific Bank (Westpac) mortgage interest rates.
The benchmark floating rate for the National Bank of Australia will be raised to 3.87% from 3.69%. The adjustment will affect only new customers signed from Friday, Nov. 9, and old customers will not be affected. At the same time, the standard floating rate remained at 5.24%, without adjustment.
The National Bank of Australia`s interest rate adjustment is unusual because lenders typically target old clients who have signed mortgage agreements.
RateCity spokesman Tyndall (Sally Tindall) said National Bank of Australia "puts brand reputation above its new business" and that few banks waive existing customers when interest rates are raised.
New customers who sign a 30-year A $ three hundred thousand loan deal will raise their monthly payments to A $1410 from A $1379.
(Andrew Thorburn), chief executive of the National Bank of Australia, earlier admitted publicly that the continuing disclosure of "catastrophic" information by the Royal Commission of Inquiry on Financial Services had hit banks` reputations.
Among Australia`s four biggest banks, Federal Bank of Australia has the lowest floating rate at 3.79 percent, followed by ANZ Bank at 3.81 percent. Western Pacific Bank has the highest floating rate, at 3.98%.
