NAB will cut its variable home loan and business rates following today's cash rate decision by the Reserve Bank.
The big four bank announced that it will reduce its variable rate for home loans by 0.25 per cent.
This announcement means NAB’s Variable Rate for Home Loans (Standard Variable Rate) will reduce from 5.60 per cent p.a. to 5.35 per cent p.a.
NAB group executive personal banking Gavin Slater said in making the decision to change interest rates, the bank considers a range of factors.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” Mr Slater said.
“Today’s decision balances the needs of our home loan customers with our shareholders.”
The change applies to owner occupier and residential investment variable rate home loans.
For owner occupiers with NAB’s Variable Rate for Home Loans (Standard Variable Rate) the rate will reduce from 5.60 per cent p.a. to 5.35 per cent p.a.
For residential investors with NAB’s Variable Rate for Residential Investment Home Loans the rate will reduce from 5.75 per cent p.a. to 5.50 per cent p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.25 per cent.
The new rates will be effective from 16 May 2016.