NAB remains strong despite home loans arrears
Article by Mozo
House hunters looking for low interest home loans have heard how a major mortgage provider has maintained a strong financial position.
Personal banking boss at the National Australia Bank (NAB) Lisa Gray told the Australian that the institution is looking solid despite sizeable home loans arrears.
Ms Gray added the organisation was "very comfortable" with the amount of debt and that mortgages are performing as expected.
NAB has been offering the lowest variable rate home loans for the past two years and although the mortgage sector is starting to become more subdued, NAB continues to grow three-times faster than its rivals.
"We have risk-based pricing, so applications with a loan-to-valuation of less than 75 are well priced and applications above 85 per cent attract a slightly higher price," Ms Gray told the publication.
Members of Generation Y are expected to lead a revival of the property market, as KPMG partner Bernard Salt told Australian Broker News that this group was less badly affected by the global recession.
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