8 December 2011
National Australia Bank has today announced that it would
cut its standard variable home rate to 7.22% pa, passing on
the RBA rate cut in full. NAB will also pass on the 25 bps
cut to variable rate business loans.
For 29 months NAB has maintained its competitive position
by offering customers the lowest standard variable home
loan rate of the major banks. Following the decision to cut
interest rates by 25 basis points, NAB customers will save
$62 per month on an average $300,000 NAB home loan.
Announced Standard Variable Rate p.a., as at 3pm 8
Lisa Gray, Group Executive NAB Personal Banking, said: "For
more than two years, NAB has offered the lowest standard
variable home loan rate of any of the major banks.
"Our commitment is to be competitive and we think that our
track record speaks for itself.
"This has been a difficult decision, where we have had to
weigh the concerns of our customers and the community with
the rising cost of funds.
"While we continue to be concerned about uncertainty in
Europe and the impact on increased funding costs, our view
is that it is important to put money back in the hands of
our customers and assist with supporting the Australian
economy this Christmas.
"We remain concerned about rising funding costs and will
continue to monitor developments overseas.
"We are committed to being competitive and for the
last 29 months NAB has had the lowest SVR of the major
banks. We said we would provide our customers with fair
value and we have continued to do so," Ms Gray said.
NAB has led the industry and abolished the most disliked
fees, including overdrawn fees, credit card overlimit fees
and mortgage early exit fees for new and existing
customers. NAB customers will continue to benefit from
having the lowest standard variable rate of any of the four
The new standard variable interest rate is effective from
Friday16 December, 2011. The new standard business variable
rate will be effective from Monday 19 December 2011.
UBank, backed by NAB, announced that it would also cut its
standard variable rate for the online-only UHomeLoan by 25
bps to 6.34%pa, with a special offer of an additional 20
bps discount continuing, bringing the rate for eligible new
customers to 6.14%pa. The change is effective from 16
December 2011, available via .
The Homeside standard variable home loan rate will also be
cut by 25 bps to 7.25% pa, effective Friday 16 December.
NAB will also reduce a range of deposit rates by 25 bps.
For further information:
0457 551 211
0411 227 585