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NAB launches online mortgages

NAB launches online mortgages

May 30, 2011

In its continued assault on the mortgage market, NAB has announced a foray into the online sector. NAB, of the nation’s biggest home loan lender will use its internet banking channel UBank to offer borrowers heavily discounted mortgages.

Until the end of the financial year, UBank is offering standard variable rate mortgages at 6.59 percent – more than a full percentage point below most lenders’ current standard variable rates.

With online mortgages gaining in popularity, it seems NAB is keen to secure a chunk of the market and also to maintain sales growth in a stagnant mortgage market.

“UBank is offering a quick and easy, low-rate alternative – and encouraging home owners to have a good, hard look at their existing loan,” says Alex Twigg, General Manager of UBank.

“Within half an hour, customers can calculate the potential saving on their mortgage payments and lodge an application online at UBank.com.au,” he adds.

UBank research reveals that after interest rates rose in November, the number of people looking to refinance jumped 12 per cent to almost one in two homeowners.

UBank launched three years ago, offering high interest savings accounts and ventured into the mortgage market in February.

Twigg says UBank UHomeLoan (for refinancing) is free from application, account keeping, ad hoc, administration and early exit fees and customers are able to get assistance via Skype.

NAB’s high profile ‘break up’ campaign and discount mortgage strategy have seen the lender’s sale growth increase at more than three times that of their main competitors.

However NAB is not alone in pursuing online revenue streams. Westpac recently offered discounts on two-year fixed loan products via its RAMS division, while the CBA’s online arm – BankWest – has been offering high interest savings accounts.

Current standard variable rates*Westpac: 7.86 percent
Commonwealth Bank: 7.81 percent
ANZ: 7.80 percent
NAB branches: 7.67 percent

*Current standard variable rates at time of writing

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