Following CBA's decision to reduce home loan rates this afternoon, another major bank has today announced it will reduce its variable rate on all new and existing variable rate home loans.
In a statement this afternoon, NAB said it will cut rates by 0.10 per cent per annum, effective from Friday 19 August 2016. This means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce to 5.25 per cent p.a.
NAB chief operating officer, Antony Cahill, said NAB had carefully considered the needs of customers and shareholders and the current economic and regulatory environment in making this decision.
“We have had to strike the right balance between providing customers with competitive mortgage rates and continuing to generate attractive returns for our 584,000 shareholders, while recognising that NAB’s funding costs have been steadily increasing due to a range of factors, including the need to strengthen our balance sheet,” Mr Cahill said.
“We also need to be able to continue investing in the products and services our customers want.”
Mr Cahill said NAB is committed to providing customers with great value and service. As of March this year, NAB home loan accounts are, on average, almost 15 months ahead on their repayments, and Mr Cahill said NAB has a range of home loan products available to suit customers’ needs.
“We understand some customers want to have certainty about their monthly repayments and that’s why we offer a number of highly competitive fixed-rate terms which allow customers to lock in interest rates for all or part of their home loan,” Mr Cahill said.
NAB is currently offering a suite of “4-under-4” fixed rate home loan offers. For owner-occupier principal and interest borrowers, interest rates ranging from 3.75 per cent p.a. to 3.99 per cent p.a. are now available across one, two, three, and four-year terms. Competitive offers are also available to those borrowing for investment purposes.
Also, from Monday 8 August, NAB will increase its interest rate on 8-month Term Deposits by 0.85 per cent p.a., introducing a Blackboard Special of 2.90 per cent p.a. (interest paid at maturity).
NAB will also reduce its rate for standard variable business rate lending products by 0.10% per annum, effective from Friday 19 August 2016.