NAB rate cut

by Rachel Seymour 24/11/2008

 NAB standard variable rate has been cut by 62 basis points.  The Reserve Bank of Australia (RBA) cut official cash rates by 75 basis points on 4 November, prompting all major banks and non bank lenders to reduce rates, although not one of the banks has passed on the full 75 basis points reduction. 

In response to the latest rate cuts, real estate agents and mortgage brokers are seeing an increase in enquiries from first-home buyers.

NAB's standard variable mortgage interest rate will fall from 8.36 per cent to 7.74 per cent, effective November 10, the bank says.


The official cash rate is now at 5.25 per cent, following three consecutive cuts from the RBA.  In September, the rate was cut by a conservative 0.25 per cent, followed by a shock 1% cut in October.  Then on November 4, the rate was cut again, this time by 0.75 per cent. 

This latest cut of 62 basis points from the NAB will save home owners with a $250,000 mortgage more than $120 per month on their mortgage repayments.

Cuts to rates have also been announced by Westpac and Commonwealth Bank, although none of the Big Four banks have passed on the full RBA's cut.

NAB have also cut their fixed rate home loans, these are to be cut by 100 basis points.


Join the discussion on National Australia Bank (NAB)

source: The Australian
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