The National Australia Bank (NAB) has cut its standard variable rate for home loans by 0.25% to 5.63%.
The move, announced shortly after competitors Commonwealth Bank and Westpac cut their rates, is expected to help customers save $62.50 a month in interest. The new rate will be used from 20 February, alongside the reduction of 0.25% to its standard variable business lending products.
“This means NAB customers with a standard variable home loan will on average save $62.50-a-month or $750-a-year in interest payments – a significant saving for Australian households,” said
Gavin Slater, Group Executive Personal Banking.
Meanwhile, NAB has also revealed its unaudited cash earnings for December quarter which soared by 6% and amounted to $1.65bn.
To date, NAB is the country’s largest lender with 28% of its lending made to companies.
Existing rates from other major banks as of this morning, 5 February, are as follows:
ANZ       5.88%
CBA       5.65%
WBC      5.70%