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

Advertisement

Update resultsUpdate
Filters
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
5.54% p.a.
5.58% p.a.
$2,852
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
5.49% p.a.
5.40% p.a.
$2,836
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
5.64% p.a.
5.68% p.a.
$2,883
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

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

Image by Bahnfrend on Wikimedia Commons

Collections: