Wednesday, 4 February 2009
National Australia Bank announced today that following the Reserve Bank of Australia’s (RBA) decision to reduce the official cash rate yesterday it would reduce its standard variable mortgage interest rate by 1.0% to 5.74% per annum (pa).
Since September 2008 NAB has cut its standard variable home loan interest rate by 3.87% pa – the most of any major bank in Australia. These cuts have delivered savings of $9,675 a year or $806 a month in interest on an average $250,000 loan1. NAB’s new standard variable home loan rate will reduce to 5.74% pa on 13 February 2009.
In addition, NAB will be reducing its credit card interest rates this month by up to 1.0% pa.
Lisa Gray, Executive General Manager, NAB Retail Banking, said NAB believed in providing savings to customers wherever possible.
“At NAB we continue to look for ways to pass on savings to our customers, particularly during these economically turbulent times,” Ms Gray said.
“We demonstrated this in December when we passed on a full 1.0% interest rate decrease to our standard variable rate home loan customers and I’m pleased we have been able to do that again this month.
“It is important to acknowledge, however, these latest rate cuts have come at a time when our funding costs are at very high levels and we may not be in a position to pass on full rate cuts in the future. We also expect to see the large gap that currently exists between some of the major banks home loan rates to close in the short term.”
Ms Gray said while the market remained volatile around the world, NAB’s long-standing commitment to helping customers achieve their financial goals remained strong, despite the economic turmoil.
“We will continue to ensure we are being balanced in our pricing decisions, and we will do our best to pass on savings to customers when market conditions allow,” she said.
For customers experiencing hardship, a number of assistance options are available to help manage repayments. Customers seeking this assistance or financial advice should visit any NAB branch or call NAB Direct on 13 22 65.
1 Interest savings over a one year period should interest rates remain constant.
Media contact: Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104
Gillian Griffiths NAB Corporate Affairs M: +61 (0) 419 667 783
*The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges.