NAB pulled up for misleading home loan ad

ONE of Australia's big four banks has been forced to run advertisements correcting misleading claims about its home loans.

The National Australia Bank earlier this month published wraparound advertisements in two Fairfax metropolitan newspapers.

Those advertisements, in the Sydney Morning Herald and The Age, had claimed the bank had "the lowest standard variable rate for more than five years".

However, the corporate regulator questioned the claims, as the bank failed to qualify the statement with words to the effect "of the four major banks".

While the claim was correct for NBA's home loans compared to the other big four banks, small and independent banks offered lower rates on their products during the past five years.

Australian Securities and Investments Commission deputy chairman Peter Kell said buying a home was a "very big step in someone's life" and it was vital that claims made about home loans were accurate.

The advertisements correcting the claims will run in both newspapers on Tuesday.