NAB passes on full rate cut to offer 6.13% standard variable rate

National Australia Bank today announced it would cut its standard variable home loan rate by 0.25%p.a. to 6.13%p.a. 

It took just 15 minutes for the bank to announce its decision in comparison with previous decisions which have taken days.

The new rate is effective from Monday 13 May.

NAB will also reduce its rate on standard variable business rate lending products by 0.25%p.a. UBank, backed by NAB, also announced it would cut its standard variable rate for the online-only UHomeLoan by 0.25%p.a.

The reduction saves customers $62.50 per month in interest on the average $300,000 home loan.

Gavin Slater, group executive personal banking said NAB was committed to being competitive.

“For 46 months NAB has had the lowest standard variable rate of the major banks. As a result, NAB customers on a typical mortgage have saved up to $2,060 in interest on NAB’s SVR compared to being on the SVR of the other major banks,” he said.

“We recognise that certainty is important for our customers, which is why we are pleased to be able to quickly pass on a 25 basis point reduction.  

“We have a strong track record of being competitive. We led the industry in abolishing the most complained about fees, we’ve made our credit card payments fairer and maintained the lowest standard variable rate of the majors for nearly four years.”