National Australia Bank has become the third major lender to pass on the Reserve Bank's rate cut in full.
NAB today announced it would cut its standard variable home loan rate by 25 basis points to 5.63 per cent per annum.
The major bank said home loan customers will save an average $62.50 a month in interest after the RBA rate cut is passed on.
Gavin Slater, group executive for personal banking, said the cut meant NAB was offering its lowest standard variable rate in nearly 40 years.
“This means NAB customers with a standard variable home loan will on average save $62.50 per month or $750 per year in interest payments – a significant saving for Australian households,” he said.
Mr Slater said NAB was committed to competition and delivering a greater customer experience.
“NAB has led the industry in making banking fairer for all customers,” he said.
“We abolished the fees and charges that annoyed customers the most and we are the only major bank to have a fully featured personal transaction account available to all our customers with no monthly account keeping fees.”
The new standard variable rate is effective from Friday 20 February 2015. NAB will also reduce its rate for standard variable business lending products by 0.25 per cent per annum.
Effective Friday 20 February 2015, NAB Broker will also reduce its Homeplus variable interest rate by 0.25 per cent per annum.