The bank will reduce its variable home loan rates by 25 basis points following the RBA's decision to lower the cash rate to 3.85% at its May meeting. 

This adjustment aligns with NAB's longstanding policy of implementing rate changes 10 days after the RBA's announcement – a practice upheld since 2017, regardless of whether rates are increasing or decreasing.

For new borrowers or refinancers, NAB's lowest advertised variable rate may be expected to decrease from 6.19% p.a. to 5.94% p.a.

This reduction could lower monthly repayments on a $600,000 mortgage by nearly $100 – from $3,671 to $3,574 – resulting in annual savings of over $1,160.

"We're pleased to announce that the variable rate on NAB home loans is decreasing," said NAB group executive of personal banking Ana Marinkovic.

"This provides some relief for those customers still dealing with cost of living challenges."

NAB was the first major lender to announce it's intent to pass on the May rate cut, gaining the edge over peers CommBank, Westpac, and ANZ.

While the reduction benefits both owner-occupiers and investors on variable rates, customers with fixed-rate home loans will not see their rate change unless they transition to a variable rate.

Though, borrowers who wish to reduce their repayments in line with a lower interest rate will need to request to do so. 

If they don't they'll effectively find themselves making extra repayments.

“More than 95% of NAB customers opted to keep their repayments at the same level when rates last decreased, choosing to pay down their home loan quicker and save more in the long term,” Ms Marinkovic said. 

See how other lenders are responding to the RBA's May rate cut: Your Mortgage rolling coverage

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.29% p.a.
5.33% p.a.
$2,773
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.19% p.a.
5.10% p.a.
$2,742
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
5.39% p.a.
5.43% p.a.
$2,805
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Offset
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
 Disclosure
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning

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