National Australia Bank changes lending rates

Monday, 14 July 2008

NAB announced today a change of 0.15% per annum to its standard variable home loan interest rate, to 9.61% per annum. The new rate takes effect from 15 July 2008.

NAB CEO, Ahmed Fahour, said changes to home loan interest rates across the banking sector reflected the sustained increases to long-term wholesale funding costs all banks had been experiencing.

"Australian banks continue to witness significant increases in funding costs. This has been made more acute by the industry's increased reliance on international funding to meet demand for credit," Mr Fahour said.

"While this change still does not recoup the full impact of increased wholesale funding costs, we have a responsibility to balance the needs of customers and shareholders.

"We continue to offer a range of competitive variable and fixed rate home loans and, later this month, we will introduce a new product to our suite of Smart Banking accounts, the Clear Banking Home Loan, with no exit fees for customers wanting greater choice and simplicity in banking.

"The Clear Banking Home Loan is another example of how NAB is offering more choice to Australian consumers, and cutting fees," Mr Fahour said.

Customers seeking assistance or financial advice should visit any of NAB's 800 branches or call NAB Direct on 13 22 65.

Media contacts:

Luisa Ford M: +61 (0) 411 024 104

Kerrina Lawrence M: +61 (0) 417 034 738

* 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