NAB trims Homeside rates

By Agnes Gajewska | 14 Apr 2009

While NAB snubbed its direct home loan customers following the 7 April RBA rate cut, it today announced it would be passing on a 10bps to borrowers of its broker-distributed Homeside products. 

Effective 17 April, all variable products as well as the HomePlus Home Loan Special Offer will be reduced by 0.10%.

Speaking of the decision, NAB Broker executive general manager, Matt Lawler, said the lender had taken a "prudent approach to interest rates while still delivering a compelling solution for brokers and their clients".

However, Lawler warned brokers to take a long term view of interest rate movements when making recommendations to clients.

"In particular at this point in the interest rate cycle, the decision whether to take a fixed, variable or mixed option is an important consideration," he said.

"In our experience, fixed rate pricing typically bottoms prior to or simultaneously with variable rate pricing, rather than after variable rates begin to rise."

However, he said a broker's recommendation for a fixed versus a variable rate product should be considered on an individual basis.

NAB did not offer any rate reductions to its direct channel.

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Commented by: jas at 21 Apr 2009 01:25 PM Report this comment
Matt WHO??????

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