NAB increases home loan market share

National Australia Bank (NAB) has increased its share of the home loan market in the wake of higher interest rates at some of its main competitors.

New data from the Australian Prudential Regulation Authority shows that NAB, Australia's fourth largest bank by market capitalisation, grew its residential mortgage book by 1.3 per cent in December 2010, thereby outpacing ANZ's 0.8 per cent growth, Westpac's 0.55 per cent and CBA's 0.2 per cent.

Commenting on the figures, The Australian suggested that people looking to compare home loans may have been tempted by NAB's "Fair Value" banking campaign.

"NAB has the equal cheapest standard variable rate among the majors at 7.67 per cent, with ANZ, compared with Westpac's 7.86 per cent and CBA's 7.81 per cent," the newspaper observed.

It was also noted that CBA and Westpac have been seeking to slow down the pace of their mortgage lending following recent, rapid expansion, while CBA's "anaemic growth" was also partly attributed to its decision to raise rates by nearly double the Reserve Bank's official hike in November.

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