Powered by MOMENTUM MEDIA
subscribe to our newsletter

Major bank warned over misleading mortgage ads

A major lender has come under fire from ASIC for incorrectly claiming to have the lowest standard variable rate.

National Australia Bank (NAB) will run advertisements correcting claims about its home loan rate as part of ASIC’s crackdown on false and misleading financial promotions.

Earlier this month, a NAB promotional wraparound published in The Sydney Morning Herald and The Age claimed the bank "had the lowest standard variable rate for more than five years".

The claim was false since NAB failed to qualify its claim with words that would indicate "of the four major banks". Outside the major banks, NAB has not had the lowest standard variable rate in the past five years.

“It is important that all firms ensure financial promotions are fair, clear and not misleading so that consumers are able to make informed decisions,” ASIC deputy chairman Peter Kell said.

Advertisement
Advertisement

PROMOTED CONTENT


“Buying a home can be a very big step in someone’s life and claims about the cost of a home loan can dramatically impact that decision, so it is vital that these are accurate and truthful,” Mr Kell said.

NAB will run advertisements in Tuesday’s issues of The Sydney Morning Herald and The Age correcting the claim.

 

Major bank warned over misleading mortgage ads
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.