NAB today announced reductions to interest rates across its variable home loan products.
From 11 October 2019, NAB’s advertised Tailored Home Loan variable rates will be as follows:
NAB Chief Customer Officer Consumer Banking, Mike Baird said the 15-basis point cut could save owner-occupier customers paying principal and interest on a $400,000 home loan $444 a year.
“This is on top of the 44-basis point reduction across June and July this year, which means customers with an average $400,000 loan could save a total of $1,740 a year,” Mr Baird said.
“We acknowledge our housing investors paying interest-only have some of the highest rates, which is why we have decided to cut their rate by 30-basis points.
“While these changes further support our 930,000 home loan customers, we are aware of the growing impact reductions in interest rates have on our 3 million savings and investment customers and will continue to offer competitive interest rates on savings and term deposits.
“At the same time, we are committed to investing in and improving our customer experience, and since May have scrapped around 100 fees from our products and services.”
Mr Baird said NAB, like all major lenders, largely relied on customer deposits in order to lend.
“With the RBA cash rate at historic lows, the cost of deposits comes under pressure,” he said.
“This dynamic is unlikely to change for the foreseeable future, but we’re determined to support all our customers and play our part by continuing to lend to boost growth and confidence in the economy.”
Fast facts:
- NAB currently has the lowest Standard Variable Rate of the major banks.
- Every month, NAB lends, on average, $4 billion for customers to buy, renovate or refinance their home.
- NAB home loan customers are, on average, 33.7 months ahead on their repayments, with two-thirds at least one month ahead.
- NAB continues to back young Australians with their home ownership dreams by offering a special fixed rate of 3.09% p.a. for two years for first home owners.
