National Australia Bank has cut its standard variable rate by 0.25% to 5.63% per annum, its lowest offer in nearly 40 years.
Effective 20 February, NAB will also cut the variable rate of their business lending products by 0.25% per annum as well as reducing its Homeplus Variable Interest Rate by 0.25% per annum.
NAB Group Executive Personal Banking Gavin Slater says, “This means NAB customers with a standard variable home loan will on average save $62.50-a-month or $750-a-year in interest payments – a significant saving for Australian households.”
AMP Bank will cut all their existing variable rate home loans by 25 basis points as well, effective 23 February, landing the rate slightly higher than NAB at 5.75% per annum.
The AMP Essential Home Loan will also be cut to 4.49% per annum.
has announced it will reduce its variable home loan interest rate by 0.25% per annum, effective 27 February 2015. The new standard variable rate on home loans will now be 5.74%.
Suncorp Bank chief exectuive, John Nesbitt said the decision to cut interest rates was good news for borrowers, small businesses, agribusinesses and retail.
Citi also announced yesterday that it will reduce its variable home loan interest rates by 0.25% to 5.94% per annum. The reduction in Citi’s variable mortgage rates is effective 20 February.
Finally, ANZ was the last major lender to cut rates yesterday. However, effective 12 February, the new rate will come into effect eight days earlier than most of its major competitors. ANZ’s standard variable rate will be dropped 25 basis points to 5.63% per annum.
The major lender says the rate cut will save customers about $60 per month or $750 per year for the average home loan of $280,000.