NAB opens fire again in mortgage war
National Australia Bank will open a new front in the bank pricing war, with plans to use its internet banking business UBank to sell deeply discounted mortgages.
NAB executive general manager of strategy Greg Sutherland said UBank has been able to price more aggressively than rivals given it runs as a stand-alone business, without the need for costly infrastructure such as a branch network.
NAB fired the first shot in the mortgage war in February when it offered to pay the $700 mortgage exit fee of CBA and Westpac customers. This was followed by the break-up advertising campaign against the other majors.
CBA quickly hit back by offering up to $1200 cash to NAB customers looking to switch loans. At the same time, CBA also targeted NAB business banking customers, while Westpac offered a range of discounts across new mortgages.
Source: The Age