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National Australia Bank today announced that, in response to the continuing higher cost of wholesale funding experienced since August 2007, it will make a change of 0.12% to its HomeSide branded variable rate and NAB variable rate home loans.
From Friday 4 January 2008 NAB’s standard variable rate will be set at 8.69%.
NAB continues to offer a range of competitive fixed rates, which are not affected by this change, including a one year introductory rate at 7.59%, three year introductory rate at 8.19% and 10 year rate at 7.99%.
NAB Executive Director and CEO Australia, Ahmed Fahour, said that the variable rate change was designed to partially recover costs that have been incurred since August 2007.
“Over the past five months wholesale funding costs have increased on average by 0.20% – 0.30%. In December these cost increases averaged 0.30% - 0.40%,” he said.
“While this change will not recoup the full impact of increased wholesale funding costs NAB has a responsibility to balance the needs of customers and shareholders.”
The change equates to $4.61 per week on the average NAB home loan of approximately $200,000.
Mr Fahour said deposits would continue to be an important funding stream with NAB offering a range of highly competitive options for customers.
NAB term deposit offers currently include five months at 7.00% and two years at 7.50%* while NAB iSaver offers 6.55% on all balances.
NAB will continue to monitor and review both deposit and lending interest rates as well as any changes to the wholesale funding markets.
Radio note:
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Media contact:
Rebekah Miles
National Australia Bank
Mob: 0400 541 139
Felicity Glennie-Holmes
National Australia Bank
Mob: 0412 673 038
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