Does NAB = Homeside when it comes to rate cuts?
- Thread starter jerrybee
- Start date
They are different business units within NAB, they argue that they are somewhat independant.
That said, they do tend to reflect each other in rate cuts, this time it's been 0.2% which is effective next weekend.
That said, they do tend to reflect each other in rate cuts, this time it's been 0.2% which is effective next weekend.
Lots of similarities between the channels and some massive differences.
NAB direct doesn't capitalise LMI so you need to pay this from your pocket. NAB Broker does capitalise the loan.
NAB direct uses QBE as their mortgage insurer (which I personally prefer) and NAB Broker uses Genworth. NAB QBE accepts Kerbside valuations on LMI loans whereas Genworth will always ask for full valuations plus heaps more variations w/ QBE v Genworth.
Pricing is definitely different.
NAB direct has stronger pricing but ironically NAB Broker will match it if you can provide proof of the pricing so although many say its the same, its not really.
NAB direct doesn't capitalise LMI so you need to pay this from your pocket. NAB Broker does capitalise the loan.
NAB direct uses QBE as their mortgage insurer (which I personally prefer) and NAB Broker uses Genworth. NAB QBE accepts Kerbside valuations on LMI loans whereas Genworth will always ask for full valuations plus heaps more variations w/ QBE v Genworth.
Pricing is definitely different.
NAB direct has stronger pricing but ironically NAB Broker will match it if you can provide proof of the pricing so although many say its the same, its not really.
From a brokers point of view (and this may be my own experience) but dealing with Nab direct can be painful. Their processes are clunky and often slow.
Nab broker (from my experience) are much more reliable and efficient - I normally get approvals within a day or two. With Nab direct - it can vary from one day to two weeks!
Nab broker (from my experience) are much more reliable and efficient - I normally get approvals within a day or two. With Nab direct - it can vary from one day to two weeks!
Good to know. I'm about to do 2 Construction Loans through Homeside. Though split across 4 Loans. 2 for Land and 2 for Construction. Why is it done this way?
It doesn't have to be that way. The construction loans can be done as an increase to the land loan with NAB Broker.
Yes. Thanks Peter. Had a noob moment.
I just saw this. I'm reading that they won't apply total lending for investment loans, instead they only apply the standard advertised rates to the actual debt for the IP.
The no longer appear to be willing to negotiate investment rates, only owner occupied.
This will make a massive difference to the investor market. NAB just became a lender that services well, but isn't very competitive (at least until other lenders follow suit).
I've now got to make a few phone calls to clients that will be annoyed. Time to rework some applications, quite a few other lenders are going to do quite well out of this.
Edit: Just had some clarification. They're not negotiating on advertised rates for investment purposes, but the rate applied will still be based on total volume of lending. If you've got $500k with NAB and your borrow $200k more for another IP, the rate will be based on total lending of $700k.
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I love lucky dips - nothing like catching a great big unexpected discount
It's gonna be boring from now on.
Although, it looks like the race to the bottom price-wise might be coming to a end. Interesting times...
Spoke with NAB BDM this afternoon. This is all ARPRA. He suspects there'll be more coming around servicing, but not quite as nasty as AMP last week.
The change will make it harder to justify NAB, but I suspect other lenders will cut back their pricing discretion. It was bound to happen eventually. Looks like the party is coming to an end.
The change will make it harder to justify NAB, but I suspect other lenders will cut back their pricing discretion. It was bound to happen eventually. Looks like the party is coming to an end.
I haven't got that memo is this Nab broker?
Edit: yes just spoke to BDM. Interesting times indeed.
Edit: yes just spoke to BDM. Interesting times indeed.
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For what it's worth, we had an unexpectedly lousy result with CBA pricing today as well.
Spoke with Advantedge yesterday - no talk of immediate changes to servicing calc but BDM wouldn't be surprised if changes were to occur soon.
Cheers
Jamie
Me too. I feel like I'm being put on a diet.
