The National Australia Bank is to introduce interest rates on its mortgage products based on the individual risk profiling of its applicants.
Currently borrowers are awarded an interest rate based on the product that they are approved for. This has been standard practice within the home loan market for many years and across all major lenders.
However the NAB will soon introduce interest rates based on the risk profile of the individual applicant. This type of profiling is currently used for commercial loans.
Applicants with low risk profiles will be rewarded through discounts on their interest rates. This will be particularly the case where borrowers have a large deposit to contribute to the home purchase.
It is understood that the new rates system will be trialled on through the Mortgage Broker channel.
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