NAB starts home loan pricing war

The National Australia Bank (NAB) has started a home loan price war by guaranteeing that its variable rate mortgages will offer better repayment terms than its four biggest rivals.

Head of personal banking at the NAB Lisa Gray said the lender is "committed to having the lowest standard home loan rate of the major banks".

She claimed that the rate guarantee would run until the end of the year.

The rate reduction would benefit some 90 per cent of the bank's mortgage customers, who are on the lender's standard variable rate.

"We don't believe that you should have to threaten to leave in order to get a better deal from your bank," Ms Gray said.

She added that the commitment is available to all existing home loan customers on NAB's standard variable rate and all new mortgage applications.

Recently, customer satisfaction was put in the spotlight by DBM Consultants and they found that NAB's commitment to existing borrowers was one of the reasons it performed better than ANZ, Westpac and the Commonwealth Bank.

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