NAB abandoned an assurance that it would only increase monthly mortgage repayments on the 12-month “anniversary” of variable home loans, after rapid-fire interest rate rises caught the bank off guard.
National Australia Bank abandoned an assurance to borrowers that it would only increase monthly mortgage repayments on the 12-month “anniversary” of variable rate home loans, after rapid-fire interest rate rises caught the bank off guard.
Mr Garrety said he understood the NAB information for the variable rate home loan meant repayments would not go up for at least 12 months, and he had received confirmation from a NAB loan officer, even if the Reserve Bank of Australia increased the cash rate.He and his wife intentionally chose the NAB loan as they were juggling the home purchase and waiting to sell their previous residence, plus an investment property, he said.
The more regular review of repayments does not increase the overall amount owing on the loan. Rather, it changes the timing of repayments and reduces interest charges over the life of the loan., NAB home ownership executive Andy Kerr said: “In response to overwhelming feedback from customers, we introduced more regular repayment reviews to help customers keep on top of their repayments through a rapidly rising rate environment.
Mr Garrety said he was shocked. “You can’t advertise something and then take it away when it suits you.”He went to NAB’s website to look for the previously published “anniversary” information for customers, only to discover the clause had disappeared. But he had a screenshot of the “anniversary” repayment clause, enabling him to complain to NAB.
On October 26 last year, a NAB dispute resolution officer acknowledged the original clause on the website in an email to Mr Garrety: “I can confirm that it does state the following online under variable rate loans: ‘If you have a loan with a variable rate, your repayments vary when the interest rate rises and falls. If rates go up, we will review your required repayments near the anniversary of your loan set up and will give you notice of your new payment amount if it increases’.
An ASIC enforcement and compliance lawyer wrote to Mr Garrety on August 31 this year, saying, “On 31 May 2023, ASIC commenced an investigation into the matters raised by your complaint.“ASIC has decided not to take any enforcement action.”
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RBA Monetary policy: Inflation is now a homegrown problem for the RBATreasurer Jim Chalmers is blaming the oil price spike for inflation but local factors are increasingly driving inflation.
Read more »
Possible rate hike won’t ‘dramatically change’ nation’s housing marketREA Group Executive Manager Cameron Kusher says another interest rate hike from the RBA won’t 'dramatically” change what is being seen in the housing market at the moment. Mr Kusher said he believes RBA Governor Michele Bullock will increase interest rates next month by 25 basis points.
Read more »
Voice referendum: Richard Marles, how did voters ‘get it right’?Referendum: questionable response, other voices, Tesla drivers, voting trend; RBA independence; Trump’s generosity; Mid-East anger; the politics of renewables.
Read more »
Australia inflation: Will the Reserve Bank of Australia bow to political pressure?The big question is whether the RBA can resist political interference to lift the cash rate in November.
Read more »
Manmeet Sharma greeted each passenger as they stepped on his bus. Then, there was fire.On Friday, a day out from the anniversary of Sharma’s 2016 death, State Coroner Terry Ryan delivered his inquest findings into one of Brisbane’s worst attacks.
Read more »
Chanticleer podcast: Gina Rinehart changes Liontown’s game | Is Origin worth more? | Reserve Bank’s oil price headacheIn this week’s episode, James and Anthony look at how hot inflation numbers have changed the game for the RBA and ask whether the blue chips of the ASX are past their prime.
Read more »