NAB cuts standard variable home loan rate to 5.88%

National Australia Bank today announced it would cut its standard variable home loan rate by 0.25%p.a. to 5.88%p.a – saving customers an average $62.50 a month in interest.

The rate cut takes effect from August 12.

In an unusually snappy move, the bank took just five minutes from the RBA decision to make the announcement.

The decision means no other major bank has offered a lower standard variable rate than NAB for more than four years.

“We’ve today (effective August 12) cut our standard variable home loan rate to 5.88%p.a, which is the lowest it’s been in four-and-a-half years, to give our customers the certainty of a fair deal,” said Gavin Slater, group executive personal banking at NAB.

“During the past four years, NAB customers on a typical mortgage have saved up to $2170 in interest on NAB’s SVR compared to being on the SVR of the other major banks – and we’ve led the industry with our Fair Value Agenda.