NAB maintains lowest standard variable mortgage rate of big four banks, for tenth consecutive month

Tuesday, 6 April 2010

Following the Reserve Bank of Australia’s Board Meeting today, National Australia Bank confirmed its standard variable home loan interest rate and a range of deposits would increase by 0.25% per annum, in line with the RBA’s increase to the official cash rate.

NAB’s new standard variable rate will be 6.99% pa, effective Friday, 9, April 2010 – the best rate of the major banks. Since December NAB’s standard variable interest rate has been 0.27% less than he most expensive major bank, saving customers with a $300k home loan $68 a month in interest.

Lisa Gray, Group Executive NAB Personal Banking, said NAB had been working hard to form deeper relationships with its customers and the community. “This week we reassured our customers we would not increase our standard variable interest rate in April beyond that of any increase the RBA made to the cash rate this month, and we are delivering on that promise,” Ms Gray said.

“We are also delivering on our promise to be more competitive – with NAB customers receiving the best standard variable rate of the major banks for the tenth consecutive month and now the only major bank to offer a standard variable rate under seven percent.”

Ms Gray added that Australians were starting to recognise NAB delivering on its commitments with the Bank outgrowing financial system1 in home lending during February, the first time in five years.

NAB also confirmed it would increase interest rates on its Homeside products and a range of consumer deposits from 9 April 2010 as well as a range of business deposit and variable business lending products

Consumer Deposits Current rate New rate (From 9/04/10)
NAB iSaver 3.75% pa 4.00% pa
NAB iSaver Introductory Rate
(accounts opened 11/5/09 to 13/4/10)2
5.40% pa 5.65% pa
Home Loans Current rate New rate (From 9/04/10)
NAB Tailored Home Loan
(standard variable rate)
6.74% pa 6.99% pa
Choice Packages - $250k+
(packaged variable rate)
6.04% pa 6.29% pa

NAB’s overall funding costs are expected to continue increasing into 2010, driven mainly by the rising average cost of term wholesale funding and higher retail deposit costs. NAB takes this forecast into
consideration in all interest rate decisions.

1 APRA and RBA Banking & Financial System Housing Lending data - February 2010.
2 Refer to nab.com.au for terms and conditions.

The key drivers of NAB's cost of funds (PDF, 85KB).

Notes to Editor:

  • NAB’s standard variable home loan rate has been the market leader since June 2009.
  • NAB standard variable interest rate customers with an average $300k home loan will continue to be up to $68 per month better off than customers of other major banks, and over $275 since the December 2009 rate changes became effective.
  • NAB was the only major bank not to go above the official cash rate rise in December 2009.

Media contacts:

Luisa Ford, NAB Corporate Affairs – M: 0411 024 104
Gillian Griffiths , NAB Corporate Affairs – M: 0419 667 783