8 June 2012
National Australia Bank (NAB) today announced it would reduce its standard variable home loan rate by 0.21% to 6.78%p.a. – the lowest of the major banks.
The reduction will save NAB customers $52.50 per month in interest, on the average $300,000 home loan.
Standard variable home loan rates
- NAB 6.78%p.a.
- CBA 6.80%p.a.
- ANZ 6.80%p.a.
- WBC 6.89%p.a.
Lisa Gray, Group Executive Personal Banking said NAB had offered the lowest standard variable rate of the major banks for 35 months and was delivering on its commitment to remain the lowest of the majors for the rest of 2012.
"Decisions on lending rates are not taken lightly – we have sought to shield our customers from the full effects of current global economic instability, by maintaining the lowest standard variable home loan rate of the major banks.
"Our funding situation remains elevated due to high wholesale funding costs and strong competition for deposits, which has put interest paid to term deposit customers at an all time high relative to the RBA cash rate."
Following the 0.50%p.a. cash rate reduction in May, the average interest paid to NAB term deposit customers reached 2.05%p.a. above the cash rate. This compares to 0.32%p.a., prior to the GFC.
"These are always difficult decisions to strike the right balance between our mortgage holders and our deposit holders but we will continue to have the lowest standard variable home loan rate of the major banks for 2012 – as we have for the past 35 months."
NAB will also reduce its rate on standard variable business rate lending products by 0.21% p.a. effective Monday 18 June 2012. NAB's new standard variable home loan rate of 6.78%p.a. will be effective Friday 15 June 2012.
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