Banks set to wage home loan price war

Mozo

Monday 27 April 2009

Consumers will soon find themselves in the middle of a home loan price war, National Australia Bank has claimed.

Despite recent fixed-rate home loan interest rate hikes by Australia’s biggest banks, one lender is predicting a price war in the coming months.

National Australia Bank’s head of home loans Steven Shaw has claimed that competition among the major mortgage lenders is about to hot up, with NAB currently standing in pole position on fixed interest rate home loans.

Those looking to compare home loans may notice that the bank has extended its lead in offering the lowest interest rates, despite imposing a rate hike earlier this month, as its increase was smaller than the other major home loan providers.

"In the lead-up to the new financial year we’ll probably see more banks become competitive in the fixed-rate market," he said.

Meanwhile, young Aussies with a bit of spare cash may be glad to hear that the bank has decided to increase youth savings accounts interest rates.

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