Friday, 12 November 2010
Abolishes home loan early exit fees
Maintains highly competitive standard variable rate of 7.67%
National Australia Bank (NAB) today confirmed that its standard variable home loan interest rate would increase by 0.43% pa maintaining a highly competitive rate of 7.67% pa compared to CBA’s rate of 7.81% and ANZ’s rate of 7.80%.
NAB also announced today that it will abolish Early Exit Fees on new and existing NAB home loans.
For 17 months NAB has offered its customers the lowest standard variable mortgage rate of the major banks and some of the best deals on bank fees. We are determined to keep doing this.
NAB was the first Australian bank to abolish overdrawn account and monthly account fees on consumer deposits. NAB was the only major bank that did not raise variable home loan interest rates above the RBA increase in December 2009. This has saved NAB customers with an average $300,000 variable rate home loan nearly $70 a month compared to the most expensive major bank.
However, the average cost we pay to fund our lending to customers, both from overseas and through deposits, has been rising and is expected to continue to rise for the foreseeable future.
To date NAB has been absorbing these extra costs but it is not sustainable for us to keep doing that forever.
The changes NAB has announced today mean:
- NAB will still deliver its customers a highly competitive standard variable home loan interest rate.
- NAB's standard variable home loan interest rate on an average $300,000 loan will continue to deliver savings of at least $32 a month compared to other major banks who have recently announced changes to their interest rates.
- NAB will continue to absorb a significant portion of its increase average funding costs.
|Standard variable rate pa||7.67%||7.80%||7.81%||Yet to announce||Yet to announce|
Lisa Gray, Group Executive NAB Personal Banking, said: “For 17 months NAB has delivered its customers the lowest standard variable home loan interest rate of the major banks and today’s announcement means we will continue to offer a highly competitive rate.
“NAB is committed to continuing to offer fairer value banking to our customers. Continuing to offer highly a competitive standard variable home loan rate as well as some of the best deals on bank fees is an important part of this.
“We have also announced today that we will abolish early exit fees on NAB home loans.
“For some time now NAB has been a strong supporter of measures to encourage even more transparency and competition in the home loan mortgage market.
“We believe these measures will benefit both consumers and also those lenders, like the NAB, who have been willing to offer their customers the most competitive interest rates.
NAB will also increase a range of deposit interest rates by between 0.25% and up to 1.00%. Business lending variable rates will increase by 0.43% pa.
The changes to interest rates announced today will be effective from Monday 15 November 2010. The abolition of Early Exit fees on NAB home loans will be effective Monday, 6 December 2010.
NAB understands that some people’s circumstances might change and if any customers were having difficulties making home loan repayments, please contact NAB Care for assistance on 1800 701 599.
Note to Editor:
A full presentation on NAB’s current cost of funds is available on request or it will be available at nab.com.au > Media Centre later today.
For further information:
George Wright: 0419 556 616
Meaghan Telford: 0457 551 211