NAB passes on 100bps cut to HomeSide

By Larry Schlesinger | 04 Dec 2008

NAB has announced that it will pass on Tuesday's entire 100bps rate cut to its HomeSide variable rate products - in line with the reduction for holders of NAB-branded variable mortgages.

"Whilst wholesale funding costs continue to be elevated, we are pleased to be passing on the full RBA rate cut to our new and existing customers," a spokesperson for the bank said.

"The economics of the NAB Broker channel are critical to our long term participation in the broker market," she added.

The 1% rate cut will come into effect on 12 December. HomeSide's HomePlus Home Loan $120,000 to $249,999 (Variable Interest Rate 1) will see its rate fall to 6.67%.

Effective 12 December, NAB's standard variable rate will be cut by 100bps to 6.74%.

Rate cuts: CBA, NAB more generous than Westpac, ANZ

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Commented by: Brian McMichan at 04 Dec 2008 06:15 PM

Even though NAB advertised that the October cut would be passed (in part) effective 20/10, Homeside (NAB's lending arm) DID NOT pass on the cut until 31/10/08 much to the disgust of the thousands of Homeside customers.

I hope Homeside makes clear it's future intent, especially when NAB get's good press for prompt action but it's major division doesn't follow what was in the press.

It will be the banks that focus on good customer relations that will ride through this time the best. Irate customers have good memories.

Brian McMichan Caloundra 07 5491 4183

Commented by: Brian McMichan at 04 Dec 2008 06:15 PM

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