NAB home loans customer to benefit from rate cut

National Australia Bank (NAB) has announced that it will be passing on the recent cash rate reduction by the Reserve Bank of Australia.

Customers on its standard variable home loan will see their payments reduced by 25 basis points to 7.47 per cent, which translates to savings of between $20 and $35 in interest each month on an average $300,000 mortgage.

Lisa Gray, group executive of NAB personal banking, commented: "We are committed to offering the most competitive standard variable home loan interest rate possible and these decisions are never taken lightly."

The cut will take effect on Monday November 7th and means that the financial institution's standard variable rate is the lowest of the big four.

Savers may not be as pleased with the recent cuts, as NAB also revealed that it was reducing its deposit interest rates by between five and 25 basis points.

The latest cut by the Reserve Bank of Australia is the first of 2011 and it took the cash rate down to 4.5 per cent, a level last seen in October 2010.

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