8 December 2011
National Australia Bank has today announced that it would cut its standard variable home rate to 7.22% pa, passing on the RBA rate cut in full. NAB will also pass on the 25 bps cut to variable rate business loans.
For 29 months NAB has maintained its competitive position by offering customers the lowest standard variable home loan rate of the major banks. Following the decision to cut interest rates by 25 basis points, NAB customers will save $62 per month on an average $300,000 NAB home loan.
|Announced Standard Variable Rate p.a., as at 3pm 8 December 2011|
Lisa Gray, Group Executive NAB Personal Banking, said: “For more than two years, NAB has offered the lowest standard variable home loan rate of any of the major banks.
“Our commitment is to be competitive and we think that our track record speaks for itself.
“This has been a difficult decision, where we have had to weigh the concerns of our customers and the community with the rising cost of funds.
“While we continue to be concerned about uncertainty in Europe and the impact on increased funding costs, our view is that it is important to put money back in the hands of our customers and assist with supporting the Australian economy this Christmas.
“We remain concerned about rising funding costs and will continue to monitor developments overseas.
"We are committed to being competitive and for the last 29 months NAB has had the lowest SVR of the major banks. We said we would provide our customers with fair value and we have continued to do so,” Ms Gray said.
NAB has led the industry and abolished the most disliked fees, including overdrawn fees, credit card overlimit fees and mortgage early exit fees for new and existing customers. NAB customers will continue to benefit from having the lowest standard variable rate of any of the four major banks.
The new standard variable interest rate is effective from Friday16 December, 2011. The new standard business variable rate will be effective from Monday 19 December 2011.
UBank, backed by NAB, announced that it would also cut its standard variable rate for the online-only UHomeLoan by 25 bps to 6.34%pa, with a special offer of an additional 20 bps discount continuing, bringing the rate for eligible new customers to 6.14%pa. The change is effective from 16 December 2011, available via ubank.com.au.
The Homeside standard variable home loan rate will also be cut by 25 bps to 7.25% pa, effective Friday 16 December.
NAB will also reduce a range of deposit rates by 25 bps.
For further information:
Meaghan Telford 0457 551 211
Brian Walsh 0411 227 585