As borrowers brace for rising interest rates and the cost of living, NAB is working to make its home loan offering more transparent and competitive.
Economic headwinds are raising the cost of living and putting pressure on consumers, but the Australian economy has held up and there is reason to be optimistic despite this challenging environment.
The housing market continues to be active, although it is dampening growth. Home values in Australia have risen 8.0% in the past 12 months, down from the cyclical peak of 22.4% recorded in the 12 months to January 2022.
Rent values continued to climb 0.9% in the month of July, marking the sixth consecutive month of rent value growth, and now driving Australian rents up 9.8% on the year to July according to Corelogic Property Review of July 2022.
This upward trend in rental yields provides an ideal opportunity for real estate investors, who may have the opportunity to access equity and re-enter the investor market – a conversation we know many brokers are having with their clients. .
Improved affordability is also welcome news for many first-time homebuyers, especially with the launch of the First Home Warranty Program offering additional assistance and lifting caps on home values. in the big cities. With less experience in the real estate market, first-time buyers need the firm, confident hand of a broker to guide them through the often daunting buying process.
According to the latest NAB Australian Wellbeing Survey, people who own and live in their home or apartment rate their personal wellbeing much higher than those who have other lifestyles. Brokers play a crucial role in helping clients better understand their opinions and guide them to a loan that has the flexibility to adapt as their personal circumstances also change.
The importance of clarity, transparency and simplicity
As the bank behind the broker, NAB is constantly looking for ways to improve its home loan offering to make it as quick, easy and convenient as possible for brokers to secure the best loan for their clients.
Recent changes to NAB’s home loan products build on our commitment to bring clarity, transparency and simplicity to home loans, and provide brokers with the ability to access even more competitive and flexible products to meet changing needs. of their customers. For example, the updated NAB Tailored Home Loan now has multiple LVR Tailored Home Loan pricing tiers to provide more competitive rates for customers with low LVR.
The rates available for each type of loan (including construction) are more transparent, and brokers will have the ability to choose between fixed and variable rate options, or split the loan into portions.
Brokers can quickly access the appropriate LVR level and rate for clients by ordering an initial valuation and submitting a request through NAB’s instant pricing tool. Brokers can easily find tiered rates in the Aggregator software and on the NAB Broker website.
Facilitate the management of mortgage loans
Whether clients are buying their first home, retrofitting, refinancing, or investing, they need brokers to help them access flexible home loans with features that help them manage their money efficiently in this dynamic economic environment.
In addition to having more transparent rates, NAB is supporting brokers with loan products that offer 100% clearing account access on variable loans and fee-free drawdown of $500 or more on variable loans. NAB has further reduced costs for customers by permanently waiving loan application fees, saving customers $600 when they apply. This is in addition to the existing features of no annual fees and a simple monthly fee of $8 per loan.
As part of our commitment to brokers, NAB’s updated bespoke home loan is first being introduced through the brokers channel before becoming available directly to all NAB customers in the coming weeks. This is just one of the steps we are taking towards our goal of simplifying products, increasing price transparency and streamlining our offerings to make life easier for brokers.
And if you need additional help or support, our NAB BDM network is always there for you.
We are committed to supporting brokers with one place for personal and business loans.