National Australia Bank says variable mortgage rates may rise later this year, but their customers are mostly well-positioned to cope.
Speaking to the ABC’s Close of Business program, NAB chief executive Ross McEwan says his impression is that the Reserve Bank is in no rush to lift the official interest rate.
McEwan says, however, many banks have already increased their interest rates on fixed-rate mortgages.
McEwan told the Close of Business program that the cheapest interest rates that were on offer a year ago for fixed loans have already disappeared.
But a review of NAB borrowers shows three-quarters of them are well ahead on their home loan repayments.
“Most customers have a buffer, in that they’ve been overpaying on their mortgage,” he says.
“They’ve been paying more against their principal than then they would have normally.
“Our own book shows that at least 70% of our customers are well in advance of their payments.”
