From 11 February 2008 NAB has changed the interest rates on some of its Retail and Business products.
What has NAB changed?
What rates is NAB changing?
NAB is making changes to a range of Retail and Business products.
Effective Monday, 11 February 2008:
- NAB variable home loan rates will increase by 0.29% pa. NAB’s standard variable home loan rate will be 8.98% pa.
- NAB’s Base Variable indicator rate will be 8.48% pa. Rates for new Base Variable contracts will be 8.28% pa for loans less than $500k and 8.23% pa for loans above $500k.
- NAB’s 4 and 5 year fixed rates will decrease from 8.29% pa to 8.18% pa – a 0.80% discount to the new Standard Variable Rate of 8.98% pa.
- NAB Margin Lending variable rates will increase by 0.35% pa to 9.84% pa - this rate will continue to be the best advertised in this market.
- NAB Personal Loans, including unsecured and secured loans and Employees Choice Instalment loans will increase by 0.25% pa.
- Personal Overdraft, Overdraft Protection and TSP Deferred Repayment Loans will increase by 0.29% pa.
- The bonus rates for NAB Smart Reward Saver and NAB Smart Junior Saver accounts will rise by 0.30% pa to 6.30% pa and 4.05% pa respectively.
- NAB 2 Year Term Deposit rates will increase by 0.30% pa to 7.60% pa.
- Variable business lending rates will also increase by 0.29% pa.
Why is NAB making these changes?
- As a listed company NAB has a responsibility to balance the needs of customers and shareholders.
- The Reserve Bank of Australia (RBA) announced on Tuesday, 5 February 2008 an increase to the official cash rate by 0.25% pa. We will be passing this increase on plus an additional 0.04% pa to our customers.
- Within the current environment, the RBA cash rate does not reflect the true cost of funding. Banks’ funding costs have increased significantly from August 2007 and NAB has been bearing the increased costs. This year, NAB has increased its home loan rates by 0.12% pa in January and 0.04% pa in February, in addition to the RBA 0.25% in February, to partially recover the increased costs. NAB continues to absorb additional costs incurred since August 2007.
- These changes will continue to see NAB customers competitively priced against other major bank customers.
I have a NAB variable rate home loan – when will my repayments increase?
Your minimum loan repayment will increase on the anniversary of your loan - that is the date your loan was drawn down. Interest will still be calculated at the new rate from Monday, 11 February 2008. NAB customers can increase their repayments at any time. If customers have any questions, they can visit any of NAB's 800 branches to discuss their home loan requirements or call NAB Direct on 13 22 65. For Homeside customers they can call 13 22 18.
What options are available to me as a NAB customer?
NAB has a range of competitive offers and our bankers are more than happy to schedule a time to discuss the options available.
For home and business lending rates, please review the following:
For NAB customers requiring further information, the following contact points are available:
- Home loan customers: visit one of NAB’s branches or call NAB Direct on 13 22 65.
- Homeside customers: call Homeside Lending on 13 22 18.
- Business customers: visit one of NAB’s Business Banking Centres or call NAB Business Direct on 13 10 12.