Login
ISCOVER
Jessica Darnbrough
While National Australia Bank has been committed to offering the cheapest standard variable rate of the majors over the course of 2012, the lender has stayed mum on whether or not its pledge will continue into 2013.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
In February this year, NAB’s group executive personal banking Lisa Gray said the major would offer the lowest SVR home loan of all the majors throughout 2012 in a bid to provide its customers with some pricing transparency.
“We acknowledge a tougher world economy is presenting uncertainty for many customers. We also know that in facing economic challenges, Australian families want greater certainty. NAB will provide that certainty for customers by announcing our ongoing commitment to having the lowest SVR,” Ms Gray said at the time.
And while NAB has remained committed to this promise, its gap over the other majors has narrowed considerably since February.
At the beginning of the year, NAB’s standard variable rate was 8 basis points cheaper than its nearest competitor, ANZ.
Today, that gap has narrowed to just two basis points.
When asked whether or not NAB would continue to offer the cheapest standard variable rate of all the majors into 2013, NAB Broker’s general manager distribution John Flavell told The Adviser that the lender was committed to being “competitive” on fixed rates.
“The reality is that while NAB made the pledge to have the cheapest standard variable rate of all the majors for 2012, we have had the lowest rate for the last 40 months,” he said.
“At the end of the day, all I can say is that it is a dynamic market, there is a lot going on and a lender’s ability to competitively price their products will depend on the strength of their balance sheet.
“The quality assets that we have been building have left us well positioned to go out and deliver good value and service to our shareholders and customers.”
