National Australia Bank cuts home loan rates

Tuesday, 2 September 2008

National Australia Bank announced today it would reduce its standard variable interest rate by 0.25% to 9.36% per annum.

Ahmed Fahour, Executive Director and CEO Australia, said NAB’s announcement to the market on 21 August regarding a proposed reduction to its standard variable home loan rate sparked a tremendous amount of positive support from NAB customers.

“I am delighted we are in a position to be able to pass on this interest rate reduction to our home loan customers as promised,” Mr Fahour said.

“This change is the result of some relief we have experienced in our short term funding costs. We hope to see this relief continue as well as seeing it translate into lower long term wholesale funding where costs remain elevated.”

Mr Fahour said NAB would continue to monitor wholesale funding markets and future interest rate decisions would continue to reflect an assessment of the total cost of funding a mortgage.

“Medium and long term funding, along with our retail deposit base, represents the greatest proportion of our funding costs, and while the average cost of this funding continues to increase it means we are not yet out of the woods.

“We will continue to monitor our funding costs to determine when future cuts could be possible - but we are extremely pleased we are in a position today to announce a reduction of 0.25% to our standard variable home loan rate,” he said.

NAB’s new standard variable home loan rate of 9.36% pa and NAB’s new deposit rates will be effective from Friday, 5 September 2008.

Media contacts:

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