NAB has today announced changes to its variable home loan interest rates, effective Friday 30 June 2017.
The following three changes have been announced:
- The interest rate for owner occupiers making principal and interest repayments will decrease by 0.08% per annum, to 5.24% per annum
- The interest rate for owner occupiers making interest only repayments will increase by 0.35% per annum, to 5.77% per annum
- The interest rate for residential investors making interest only repayments will increase by 0.35% per annum, to 6.25% per annum
NAB Chief Operating Officer, Antony Cahill, said the reduction to NAB’s Standard Variable Rate will benefit around 80 per cent of NAB’s owner occupier home loan customers.
“The 0.08% per annum decrease will see owner occupier customers making principal and interest repayments save $14 each month, or $168 each year, and help them to pay off their home loan sooner,” Cahill said.
“We need to comply with our regulatory requirements, including APRA’s 30% limit on new interest only lending for residential mortgages, while balancing the needs of customers across our entire portfolio and continuing to provide competitive rates.”
Cahill acknowledged the impact these changes will have on home loan customers making variable interest only repayments. Borrowers will not incur a fee to switch their repayments to principal and interest; customers are encouraged to discuss variations to their home loan with their banker or broker.
NAB continues to offer first home buyers a special 3.69% per annum, fixed for two years.
“We’re pleased to continue to help Australians, particularly young Australians, wanting to enter the property market to achieve their home ownership dreams,” Cahill said.
From Friday 30 June 2017, NAB’s advertised variable rates will be as follows:
| |
Current advertised rates |
Advertised rate (Friday 30 June 2017) |
| Owner Occupier P&I |
5.32% p.a. |
5.24% p.a. |
| Investor P&I |
5.80% p.a. |
5.80% p.a. |
| Owner Occupier IO |
5.42% p.a. |
5.77% p.a. |
| Investor IO |
5.90% p.a. |
6.25% p.a. |
NAB has said the changes announced today are unrelated to the Federal Government’s Major Bank Levy.
