This article is from the Australian Property Journal archive
THE National Australia Bank has lifted its rates for a second time following the Reserve Bank's official interest rate rise earlier this month.
NAB has raised its standard variable home loan by another nine basis points to 9.36%.
NAB’s executive director chief executive Ahmed Fahour said the change reflected the sustained increases to short and long term wholesale funding costs.
“NAB has been absorbing much of these costs on behalf of customers since August 2007. The true cost of funding a home loan is no longer reflected by the RBA cash rate, and because of the premium banks are paying in wholesale funding markets we have an ongoing responsibility to balance the needs of both our customers and shareholders.
“It is important that the price of mortgages reflects the true cost of funding in order to ensure that the Australian mortgage system continues to function well,” Fahour said.
Currently, Westpac has the lowest rate at 9.27%, followed by the Commonwealth Bank with 9.32% and ANZ Bank and St George Bank with 9.37%.
Australian Property Journal
