NAB has announced it will cut its standard variable rate by 20 basis points – the lowest it has been since 1978.
The rate reduction will see NAB’s standard variable home loan rate start at 5.43 per cent.
The bank’s broking arm, NAB Broker, has announced it will also reduce its broker-exclusive Homeplus variable interest rate by 20 basis points to 5.46 per cent.
Gavin Slater, NAB’s group executive for personal banking, said the bank was pleased to deliver further savings to its customers after cutting its standard variable rate by 25 basis points in February.
“Today’s announcement means NAB customers with a standard variable home loan will save an average $50 a month or $600 a year in interest payments based on a $300,000 interest-only home loan – leaving more money in household budgets for other expenses,” he said.
Mr Slater said NAB was committed to competition and providing great value and service to customers.
“Our standard variable home loan rate is the lowest it has been in almost 40 years, and NAB is also offering customers our lowest-ever fixed home loan rates for one- to five-year terms,” he said.
The bank’s Choice packaged fixed rate is now at 4.49 per cent for one year, 4.59 per cent for two years and five years, 4.69 per cent for three years and 4.99 per cent for four years.
NAB has also announced it will reduce the rate on its standard variable business lending products by 25 basis points.
The new rates are effective from 13 May.
[Related: ING Direct slashes variable rates]