Westpac follow NAB with full May 2016 rate cut

Westpac has follow NAB to pass on the full May 2016 rate cut.

National Australia Bank was first to cut the interest rate on its standard variable home loan rate by 25 basis points this afternoon.

It is the full amount of the RBA's cut.

This announcement means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 percent p.a. to 5.35 percent p.a.

NAB customers with a Standard Variable Rate home loan will save an average of $47-a-month on their monthly home loan principal and interest repayments based on a $300,000 loan over a 30-year term.

NAB Group Executive Personal Banking Gavin Slater said in making the decision to change interest rates, the bank considers a range of factors.

“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said. 

“Today’s decision balances the needs of our home loan customers with our shareholders.” 

Today’s change applies to Owner Occupier and Residential Investment variable rate home loans.

·         For owner occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate) the rate will reduce from 5.60 percent p.a. to 5.35 percent p.a.

·         For residential investors with NAB’s Variable Rate for Residential Investment Home Loans the rate will reduce from 5.75 percent p.a. to 5.50 percent p.a.

NAB will also reduce its rate on standard variable business rate lending products by 0.25 percent p.a. 

The new rates will be effective from Monday 16 May 2016.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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