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The major bank has announced that it will pull its major white label brand from market.
In a surprising move, the major bank has announced that it will pull the Advantedge brand from market.
National Australia Bank (NAB) has announced that it will be closing its Advantedge business and will be shutting it down in gradual phases over the next 12–18 months.
Advantedge, a division of NAB, has been a leading wholesale funder of white label home loans in Australia for over 25 years (when including its previous iteration as Challenger Mortgage Management), distributing through a wide network of mortgage brokers.
The major wholesale funder has achieved majority market share by focusing on simple, low-cost home loans with digital service and competitive pricing and funds many aggregator white label loans, including AFG Home Loans Edge, Mortgage Choice SmartSelect Home Loans, Loan Market’s Go Edge, Connective Essentials, Astute Simplicity Home Loans and Yellow Brick Road Home Loans Select.
However, the bank’s latest announcement revealed that Advantedge will cease accepting new lending requests from 30 September 2025.
Existing Advantedge customers will then undergo a transition to NAB-branded home loans throughout 2026.
All Advantedge servicing requests will reportedly be processed until the home loan is moved to a NAB-branded loan.
Following the completion of the transition in 2026, servicing requests will need to be applied for and processed through NAB. StarNet will remain available until further notice.
In an update to its broker community on Wednesday (11 June), the group said: “Advantedge will keep all impacted customers, aggregators, brokers and mortgage managers up to date on key milestones during this migration.”
Noting the decision to close the brand, it suggested that it “allows customers to functionality not currently available through Advantedge.”
In a note to brokers, it said: “[A]fter careful consideration the NAB Group announced that it will close the Advantedge business...
“At NAB, we’re committed to becoming the most customer-centric company in Australia and New Zealand. When it comes to purchasing a home, this means delivering a home loan experience that is simple, fast and convenient.
“We have considered the impact this decision will have on our broker community and our customers, who have told us they expect more from us. The move to NAB will allow customers access to functionality not currently available through Advantedge.
“Customers will benefit from greater flexibility and additional features, including access to up to 10 offset accounts, transactional banking and broad functionality within the NAB App.”
NAB will now become the principal credit provider for Advantedge home loans.
AFSH Nominees will act as an agent and credit representative of NAB until the transition is completed.
A letter has been sent to Advantage customers (seen by The Adviser) telling them that their loan will transition from Advantedge to NAB and that their loan documents will be reissued to reflect NAB as the credit provider.
Rates, fees, and charges are expected to remain the same.
NAB focus on its proprietary brand
The strategic pivot by NAB comes as the bank continues to increase emphasis on direct lending in recent months.
NAB CEO Andrew Irvine had previously highlighted proprietary distribution as a core priority last year, a focus that was reiterated in May following positive growth in these channels. The bank has been vocal about its intentions to drive stronger returns through its proprietary home lending.
The shift, however, has not been met with universal approval, drawing criticism from some in the broker community who had expressed disappointment over the change in strategy.
NAB’s recent financial results for the six months to March 2025 (1H25) also showed that proprietary lending is increasing.
During this period, the share of mortgages originated through the broker channel saw an 8 per cent decline, dropping to 59.6 per cent from 64.6 per cent at the end of March 2024. Conversely, new proprietary mortgages (excluding NAB-owned UBank home lending) experienced a significant 25 per cent year-on-year increase, reaching $16.6 billion.
More to come.
[Related: Proprietary channel a ‘key priority’ for mortgages: NAB]
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