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NAB continues to see great momentum in the housing market and in the first week of August, NAB saw its strongest demand in home lending applications since February 2021.
Recently released NAB data indicates demand is the strongest we’ve seen in a generation, with NAB first home buyer activity up 55.93% across Australia in FY21. The most recent launch of the First Home Loan Deposit Scheme and the expanded suitability saw a 25% uplift in first home buyer activity in July.
Against this backdrop NAB sees the monthly pace of house price growth slowing - but continuing at a solid rate, with dwelling prices up around 18.5% in 2021 and 3.6% in 2022.
Phil Waugh, NAB Executive, Broker Distribution, said changes to work patterns spurred on by the pandemic are creating more buying options to all market segments, especially first home buyers.
“Flexible and hybrid working is providing more options than first home buyers have historically had. Our research shows a shift in where they want to buy, and property prices have not risen as much in outer-metro suburbs.”
According to NAB, record low interest rates and government incentives should keep demand strong through 2021. Recent data from CoreLogic shows through July, the combined value of lending for the purchase of housing rose 0.2%, buoyed by a 1.8% lift in investor lending, demonstrating investors are re-entering the market.
A roadmap forward and continuing to support those impacted by COVID
As part of a nation-wide awareness campaign, National Australia Bank has replaced ‘nab’ with ‘jab’ to encourage Australians to get vaccinated against Covid-19, and help the nation open up again.
“Getting as many Australians vaccinated is key to unlocking greater freedoms and protection for our customers, colleagues, brokers and the community. We also recognise the growing toll of lockdowns on people’s mental health and wellbeing - we want you to know that we’re here to support you.
“In addition to our home loan support packages, we are encouraging brokers and customers to make use of NAB MyCoach – a confidential and counselling and coaching service. Please contact your BDM for more information,” said Phil Waugh, NAB Executive, Broker Distribution.
NAB CEO Ross McEwan has called for the government to provide more detail on how vaccinated residents would be allowed greater freedoms once Australia hit its 80 per cent vaccination target. Current forecasts show 80 per cent of eligible Australians will have had their first jab within three weeks, and their second jab by mid-November.
Mr McEwan remains bullish about Australia’s economic future once restrictions are lifted. He notes that as at 31 August, just over a $1.8 billion in lending was on deferral. This compared to $58 billion at the height of the pandemic last year.
Looking more broadly across all business sectors, Australia is experiencing a multi-speed economy. While some businesses are really hurting, others are doing well, this is particularly evident in mining, agriculture and some forms of manufacturing. NAB’s latest survey shows 70 per cent of owners and managers are prepared to invest to grow their business going forward.
NAB is in a strong position to support Australia’s economic recovery and job creation. In June NAB led the industry in extending $3.8 billion to businesses across the country.
Backing brokers and customers to seize market opportunities
NAB is open for business and continues to have great SLAs, support, products and policies.
It continues to provide highly competitive pricing and offers for every customer in market from first home buyers, empty nesters to investors – including extending the $2,000 Refinance Cash Bonus until 31 October and delivering highly competitive variable rate and extended LMI waivers (refer to your BDM or the NAB Broker portal for more information).
On the policy side, to support changing habits and movements from cities to regional areas during and after Covid-19, NAB has increased the allowable size and income for rural lifestyle securities, with land sizes up to 100 acres (without LMI) and income up to $50,000 gross per year. There has also been a reduction in supporting customer documentation requirements across a range of verification areas and improved serviceability policies, with the introduction of registered medical professionals into the essential service workers category.
Phil Waugh, NAB Executive, Broker Distribution, reinforced NAB’s focus on simplification and providing a consistent level of service for customers.
“Alongside strong pricing and offers, delivering consistency and clarity for brokers is one of our top priorities and we are continuing to simplify and digitise the home lending experience. NAB has made significant financial investment to ensure the origination process, the end-to-end process for broker-introduced loans, is best in market. We want to be the most reliable bank for brokers and ensure consistent service across all channels.”
Looking ahead, a new single mortgage origination process for all application channels, including NAB’s broker network - will be unveiled later in the year. The process will enable greater use of technology, minimising potential for errors and rework by brokers, and provide faster processing times.
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