Tuesday, 7 April 2009
National Australia Bank has announced that due to increased funding costs it will maintain its standard variable mortgage interest rate at 5.74% per annum following the Reserve Bank of Australia’s decision to reduce the official cash rate today.
Lisa Gray, Group Executive NAB Personal Banking, said: “Between September 2008 and today, NAB has passed on more of the RBA rate cuts than any of the other major banks in Australia - and NAB customers are the ones who have benefited.
“However whilst customer interest rates have been falling, the actual cost of banks providing a mortgage has increased significantly since the credit crisis hit in mid-2007. Our pricing needs to responsibly reflect these increased funding costs.”
Ms Gray said NAB was committed to channelling savings back to customers wherever possible. However on this occasion the bank was not able to pass on the RBA cut as a result of higher funding costs.
“Our customers have experienced a total interest rate reduction of 3.87% per annum on a standard variable rate mortgage – a saving of $806 per month in interest on an average $250,000 home loan.”
“If customers are ahead of their scheduled mortgage repayments, we encourage them to maintain these if they can afford it as the additional payments can help save them thousands of dollars and years off the life of their loan,” Ms Gray said.
“Customers looking to reduce their payments just need to call us or visit any of our 750 branches and talk through their options with one of our bankers.”
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.
For more information about cost of funds see NAB's overview of Australian banks cost of funds (PDF, 157KB).
Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104
*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.