Friday, 5 October 2012
National Australia Bank today announced it would reduce its standard variable home loan rate by 0.20% to 6.58% p.a. – the lowest of the major banks.
The reduction will save NAB customers $50.00 per month in interest on the average $300,000 home loan.
|Bank||Announced standard variable home
loan rates as at 1pm, 5 Oct 2012
NAB has offered the lowest standard variable rate of the major banks for 39 months. In that time NAB customers with an average mortgage have saved up to $1800 in interest on NAB's SVR compared to being on the SVR of the other major banks.
Group Executive Personal Banking Lisa Gray said decisions on interest rates were not taken lightly and NAB had sought to strike the right balance between offering the lowest SVR of the major banks and our obligations to ensure Australian banks are safe and secure.
"Banks obtain funds for lending from deposits and from wholesale funding markets. Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector," Ms Gray said.
"The increased competition for deposits is pushing up costs, making it more expensive to fund our lending.
"The decision we have taken today means we can continue to offer competitive deposit rates while delivering on our pledge to have the lowest SVR of the major banks for 2012."
NAB will also reduce its rate on standard variable business rate lending products by 0.20% p.a.. Both new rates are effective from Monday 8 October 2012.
For further information:
M: +61 (0) 411 227 585
M: +61 (0) 459 841 579
Note to editors: The monthly saving reflects interest savings resulting from the 0.20%p.a. reduction in SVR on a $300,000 interest-only home loan.