NAB, one of Australia’s big banks, has cut its variable mortgage rates by 0.3% – but only for new customers.
RateCity.com.au analysis showed that 23 lenders have reduced variable rates for new customers since the Reserve Bank began hiking interest rates in May, including CBA, Westpac, and ANZ. Existing variable rate customers, however, have seen their rates rise by 1.75 percentage points over the same period.
With NAB making this latest move following the lead of its competitors, Sally Tindall, Rate City research director, warned that banks could be taking their existing customers for a ride, news.com.au reported.
“Log on to your banking app and check what rate you’re paying,” Tindall said. “While you’re there, work out the exact name of your loan. Then look at your bank’s website to see what rate it’s offering new customers.”
Tindall said NAB had been forced to cut its variable rates for new customers to keep pace with the competition.
“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 news.com.au. “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.”
