NAB cuts rates: lowest in 40 years

National Australia Bank has become the third major lender to pass on the Reserve Bank’s rate cut in full.

NAB today announced it would cut its standard variable home loan rate by 25 basis points to 5.63 per cent per annum.

The major bank said home loan customers will save an average $62.50 a month in interest after the RBA rate cut is passed on.

NAB was offering its lowest standard variable rate in nearly 40 years.

This means NAB customers with a standard variable home loan will on average save $62.50 per month or $750 per year in interest payments – a significant saving for Australian households.

The new standard variable rate is effective from Friday 20 February 2015. NAB will also reduce its rate for standard variable business lending products by 0.25 per cent per annum.