Major increases broker rates

by Julia Corderoy26 Oct 2015
A major bank has announced interest rate increases across its broker-originated variable rate home loans, folliowing an increase to its direct variable home loan rates.

Effective 12 November, NAB Broker announced it will increase the interest rate on all new and existing variable rate home loans by 17 basis points to 5.63%.

According to NAB Broker general manager, Steve Kane, the decision is in response to regulatory changes on capital requirements and the increased costs associated with providing home loans.

“We operate in a dynamic and highly regulated home loan market and a number of lenders are making changes to meet regulatory obligations,” he said.

“We believe this is the right decision for the long term and brokers are in a prime position to support customers through this change and provide them with the advice they need.”

Last week, NAB announced it will increase the interest rate on all new and existing variable rate home loans through its branches by 17 basis points to 5.60%. This means that NAB Broker variable rates are 3 basis points higher than NAB’s direct rates.
 

COMMENTS

  • by Regional Broker 26/10/2015 9:22:39 AM

    What else was expected?

  • by Broker 26/10/2015 11:56:28 AM

    Pricing broker introduced loans higher, why? Very smart NAB, not!

    One wonders if this a sign of things to come in a feeble attempt keep broker introduced loans at the current levels .

    Don't they know that consumers don't want to waste their time dealing with banks directly and more often than not walking away with a poorly priced and structured loan.

  • by SEQ Broker 26/10/2015 5:27:29 PM

    So a bank thinks that they can discriminate against customers who choose to use a broker. What is their message? Do they think broker business is riskier? Sure like we have the capital to take on ASIC. Which is why we are less risky and lets be honest, NAB you are MORE risky.