NAB Cuts Rates Ahead of RBA, Offering Relief to Borrowers

ROBERT HEYWARD

National Australia Bank (NAB) has pre-empted the Reserve Bank of Australia (RBA) by slashing its basic variable home loan rate by 40 basis points to 6.44%, marking its frst cut in a year. The move could save new customers on a $500,000 loan approximately $126 per month and is likely to intensify competition in the home loan market as the holiday season approaches.

Competition Heats Up Among Lenders

The cut is seen as a strategic response to growing rivalry between banks, particularly as Commonwealth

Bank (CBA) and ANZ increasingly offer lowrate, digital-only loans.

Rachel Wastell, a personal fnance expert at Mozo, called the move “an early Christmas present” for new borrowers.

“NAB’s cut is substantial, equivalent to nearly two RBA cuts, and it’s refreshing to see a big four bank make this move without forcing borrowers into digitalonly products,” she said.

Market Trends and Big Four Movements

Data from Canstar highlights a trend of rate cuts for new customers across the lending market, with 63 reductions recorded since July. Among the big four banks: