National Australia Bank yesterday clarified that it would be extending the new tiered pricing offer on tailored home loans to direct customers next month.

The bank this week launched a restructured Tailored Home Loan through brokers which has given customers with large deposits access to deep discounts on their mortgages.

The move sparked some controversy given that NAB had not indicated whether customers buying a loan directly from the bank would be offered similar incentives.

However, a NAB spokesperson told Banking Day on Tuesday that the bank was implementing a phased rollout of the overhauled Tailored Home Loan starting with mortgage brokers.

“The new features and pricing will be offered to branch customers in the next month,” the spokesperson said.

“Our direct customers will be eligible for rate discounts if their loan to value ratio is below eighty per cent and additional savings with the removal of the application fee.”

Abolition of the application fee is currently saving brokered borrowers A$600.

Under the tiered pricing system, borrowers with loan to value ratios of less than 60 per cent are expected to be offered deep discounts on the interest rates levied on borrowers requiring lender’s mortgage insurance.