The NAB has put home loan interest rates on hold

National Australia Bank CEO Andrew Thorburn. File Photo: Saeed Khan/ AFP/ Getty Images.
  • The NAB breaks with the other big banks by putting standard home loan rates on hold.
  • CEO Andrew Thorburn said: “We need to rebuild the trust of our customers.”
  • The bank’s standard rate of 5.24% is now 12 basis points cheaper than its nearest big four bank rival.

The NAB is keeping its standard home loan interest rates on hold, breaking ranks with the other big banks.

Bank CEO Andrew Thorburn tweeted this morning that the NAB is making no change to its standard variable rate for home loans.

“Because we know that by holding our rates for longer, we’re helping our customers more,” he said.

In a video announcement, Thorburn said: “This announcement is to confirm that, if your are a NAB home loan customer, out standard variable home loan rate remains on hold.”

The ANZ, CBA and Westpac have now all lifted home loan rates, putting the blame for the rise on the increasing cost of funding.

“The longer we can hold this rate, the longer you receive a benefit,” Thorburn said this morning.

“We will continue to monitor market and funding conditions but the important message for you this morning is thank you so much for banking with us.”

The NAB’s standard rate of 5.24% is now 12 basis points cheaper than its nearest big four bank rival.

For the Commonwealth, the standard variable home loan is 5.37%, Westpac 5.38% and ANZ 5.36%.

The NAB’s hold on increasing rates saves the average home loan customer about $28 a month, assuming a 15 basis point rise and the average home loan customer with a $300,000 loan.

“We are listening and acting differently,” says Thorburn.

“We need to rebuild the trust of our customers, and by holding our NAB Standard Variable Rate longer, we help our customers for longer.

“By focusing more on our customers, we build trust and advocacy, and this creates a more sustainable business.”

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