Many lenders have lowered variable rates for new customers – but existing customers have seen their rates go up
National Australia Bank is slashing its variable mortgage rate – but only for new customers.
NAB has followed the lead of several competitors and cut its variable home loan rates by 0.3% for new customers, according to a report by The Australian. Analysis by RateCity showed that 23 lenders, including Commonwealth Bank, Westpac and ANZ, have cut variable rates for new customers since the Reserve Bank began raising the cash rate in May.
However, existing variable-rate customers have seen their rates go up an average of 1.75 percentage points over the same period, The Australian reported.
RateCity research director Sally Tindall told the publication that mortgage customers needed to pay attention to their rates.
“Log onto your banking app and check what rate you’re paying. While you’re there, work out the exact name of your loan,” Tindall said. “Then look at your bank’s website to see what rate it’s offering new customers.”
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Tindall said that NAB had been forced to slash its variable rates for new customers in order to stay competitive.
“With refinancing at record highs and billions of dollars worth of fixed loans coming to an end, lenders are cutting variable rates to attract new borrowers,” she told The Australian. “If you think as a loyal, long-serving customer your bank is doing right by you, double-check that’s actually the case. The results could surprise you.”
