NAB will wipe the full 25 basis points from variable mortgage rates after the central bank once again moved to ease pressure amid weakening inflation.
The big four bank confirmed the new rates will take effect from 25 August, a shift from its 10-day implementation window from both the February and May rate cuts.
A 25 basis point reduction is expected to see NAB's lowest advertised variable mortgage rate – that on its Base Variable Home Loan – fall from 5.94% p.a. to 5.69% p.a.
For a borrower with a $500,000 mortgage over 30 years, that change could reduce monthly repayments from around $2,980 to $2,900 – a difference of roughly $80 per month.
"Today’s RBA cash rate cut is a welcome change that should boost Australian optimism," NAB personal banking executive Ana Marinkovic said.
"We expect consumer confidence to pick up as households benefit from lower interest rates, and businesses ramp up hiring and expansion, giving workers a stronger sense of job security."
NAB joins CommBank, Westpac, ANZ, and Macquarie in passing on the full RBA rate cut to its variable rate home loan customers.
What could a rate cut mean for your wallet? Mortgage Repayment Calculator
While NAB will reduce the interest rates charged on eligible loans, borrowers likely won't see repayments automatically adjusted.
Those who want to lower their minimum repayments to reflect their new interest rate must request the change through NAB's channels.
If no request is made, customers will continue making their current repayments, effectively contributing extra payments toward their home loan.
Extra repayments may help borrowers reduce the principal faster and save on long-term interest – but may not offer immediate budget relief.
"Some people want to ease the pressure and reduce their repayments," Marinkovic said.
"Others want to keep them the same and get ahead on their loan.
“It’s your loan, your money and now, your choice.”
See how other lenders are responding to the RBA's August rate cut: Your Mortgage live coverage
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| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.29% p.a. | 5.33% p.a. | $2,773 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.19% p.a. | 5.10% p.a. | $2,742 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
5.39% p.a. | 5.43% p.a. | $2,805 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Calistemon on Wikimedia Commons
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