Westpac and NAB restricted on charging investors varied interest rates due to technical problems
Westpac is said to be losing c. AUD 1mn per day against its competitors because it does not have the technical ability to allow it to charge differing interest rates. NAB, Commonwealth Bank, and ANZ have all raised interest rates on lending to the property sector in recent days, after regulatory warnings that banks must do more to slow their lending to the sector. Although NAB has been able to raise interest rates to the property sector, it has also had to raise rates for sectors, because it does not have the technological capability to vary its rates.
Westpac Banking Corp is missing out on $1 million a day that its competitors are now creaming from landlords because its computer systems will not allow it to charge differing interest rates.

Westpac, which is the largest lender to landlords, is the only one of the big four banks not to have increased interest rates for property investors in recent days.

Westpac is not currently able to follow its rivals and boost rates for investors due to complexities in its IT systems. Credit: Mayu Kanamori

National Australia Bank on Monday said it would raise rates by 0.29 percentage points on all interest-only loans following Commonwealth Bank of Australia and ANZ Banking Group, which last week raised rates for investors only.

Sources said NAB is constrained from charging different rates to investors and owner-occupiers because of technical problems. The bank declined to comment.