anz-nab-refinancing-test.jpg

NAB announced that it will roll out adjustments to its serviceability buffer for borrowers switching lenders.

In a statement released to the media, NAB said it will be “refreshing” its existing approach to support eligible refinance customers switching to NAB who have good credit histories but may not fully meet the current standard lending criteria.

The bank said changes to its serviceability rules will take effect by 21 July.

However, the bank said it will employ a “case-by-case” approach when assessing refinancers.

NAB’s move follows Westpac and CommBank’s decision to lower the rate at which borrowers are assessed when refinancing.

Only ANZ has yet to release any indication that it will lower its stress test. However, ANZ CEO Shayne Elliot recently said that the current buffer rate that the Australian Prudential Regulation Authority (APRA) set remains appropriate.

“I think 3% feels about right. We don't know what the future holds. It's completely unknown. We're very comfortable with the 3%,” he said during the review of Australia's four major banks at the House of Representatives.

Under APRA’s current prudential framework in assessing a borrower’s repayment capacity, banks must include a 3-percentage points buffer to be applied above the current housing loan interest rate.

When Westpac announced that it will be easing its refinancing rules, the APRA released a statement calling for banks to ensure that any changes to the serviceability rules to accommodate refinancers must still follow the core intent of its guidance on credit risk management.   

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

Collections: