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- NAB cuts variable rates following RBA decision
NAB cuts variable rates following RBA decision
NAB has cut variable rates by 0.15 per cent for owner-occupiers paying principal and interest as well as interest only.
NAB’s largest cut was 0.30 per cent for investors paying interest only.
The rate cuts are effective from 11 October and are for new and existing customers.
NAB is the second of the big four banks to cut variable rates following the RBA’s decision to drop the cash rate to a new record low of 0.75 per cent.
Earlier this evening, CBA dropped variable rates for owner-occupiers paying principal and interest by 0.13 per cent.
Paul Marshall, chief executive at RateCity.com.au, said: “Both CBA and NAB have ignored the Prime Minister’s appeal to pass on the rate cut in full.”
“With the cash rate now so close to zero, the banks are attempting to balance the needs of their shareholders, investors and borrowers. However, it’s disappointing to see such small cuts being passed on by two of the big banks.”
Impact of NAB 0.15% rate cut | ||||||
NAB | Old rate | New rate | Savings per month | Missed savings per month | Savings per year | Missed savings per year |
Standard Variable Rate | 4.92% | 4.77% | $37 | $24 | $436 | $289 |
Discounted Variable Rate | 4.07% | 3.92% | $35 | $23 | $415 | $274 |
Lowest variable rate | 3.35% | 3.20% | $33 | $22 | $396 | $262 |
Source: RateCity.com.au
Note: The rates are for owner-occupiers paying principal and interest on a $400,000 loan. Missed savings are calculated based on what a customer would have saved if NAB had passed on the full rate cut of 0.25 per cent.
Big Four Banks variable rates – state of play
Standard Variable Rate | Discounted Variable Rate | Lowest variable rate | |
CBA | 4.80% | 4.30% | 3.22% |
Westpac | 4.98% | 3.64% | 3.38% |
NAB | 4.77% | 3.92% | 3.20% |
ANZ | 4.93% | 4.13% | 3.38% |
Note: Rates are based on owner-occupier paying principal and interest. Westpac and ANZ yet to announce rate cuts. CBA rates effective from 22 October. NAB rates effective from 11 October.
Who’s moved?
LIVE UPDATES: https://www.ratecity.com.au/rba-cash-rate.
Disclaimer
This article is over two years old, last updated on October 2, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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