Tuesday, 2 December 2008
National Australia Bank announced today it would reduce its standard variable mortgage interest rate by 1.00% per annum for new and existing customers.
NAB’s standard variable mortgage interest rate will be 6.74% pa effective Friday, 12 December 2008 - saving customers $250.00 a month in interest on an average $300,000 home loan.
Ahmed Fahour, Executive Director and CEO Australia, said while funding costs overall remained elevated, NAB was pleased to be passing on this month’s full Reserve Bank cut to its customers.
“Wholesale funding costs continue to be elevated and intense competition with term deposits remains due to the difficulty in accessing overseas capital markets. However, our steady growth in deposits and the strength of NAB has contributed to us being able to pass on this month’s full rate cut to customers,” Mr Fahour said.
“This year has been particularly challenging with the amount of turmoil experienced in financial markets. But, ending the year with home loan interest rates at levels not seen since 2003 is certainly a great way to close out the year.”
In addition to passing on the standard variable interest rate cut, NAB will be reducing its variable business lending rates by 1.00% pa. NAB also announced last week it had reduced its fixed interest home loan rates by up to 1.00% pa. NAB’s 1 Year Introductory Home Loan - Fixed Rate is now 4.99% pa.
“At NAB, we are committed to channelling savings back to our customers wherever possible, therefore I am pleased we are able to deliver highly competitive fixed rates as well as pass on the full interest rate cut of 1.00% pa to our standard variable rate home loan customers.“
Since interest rates peaked in September this year, standard variable mortgage rates have fallen 2.87% pa, saving customers $717.00 per month. This has brought welcome relief to our customers during these economically tough times.”
Mr Fahour added that as Australia’s leading business bank, he also welcomed last week’s passage of the Government’s legislation to support the guarantee scheme for large deposits and wholesale funding.
“This was an important step to ensure certainty around the operation of the guarantee, in the unlikely event that it is ever called upon. The passing of this legislation and access to the wholesale guarantee allows us to remain open and committed to doing more for our customers,” Mr Fahour said.
Media contact: Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104
* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges