NAB confirmed it will reduce its standard variable home loan interest rate by 0.25%, effective 28 February, shortly after the central bank announced its first cash rate cut since 2020. 

The RBA board announced its decision to trim the cash rate from 4.35% to 4.10% on Tuesday afternoon.

NAB group executive of personal banking Ana Marinkovic said the lender was "very pleased" to pass on the reduction to customers who have endured a prolonged period of high interest rates.

"We understand how tough it’s been for many Australians,” she said.

“The extended period of high interest rates has placed real strain on household budgets, and this rate reduction will help to ease the financial burden.”

“We wanted to move quickly after the RBA’s decision to provide customers with certainty.”

NAB has once again implemented its policy of passing on rate changes 10 days after the RBA's decision—a practice it says its upheld since 2017, regardless of whether rates are increasing or decreasing.

What’s next for borrowers?

For homeowners, the rate cut could mean lower monthly repayments, but customers may need to adjust their repayment settings to reflect the new rate.

Those looking to maximise savings may consider keeping repayments at their current level to pay off their mortgage faster.

With NAB and other major banks now responding to the RBA’s rate cut, the focus shifts to whether this signals the beginning of a broader easing cycle or a one-off adjustment.

Want to see how much you could save? Use our Mortgage Repayment Calculator to find out.

Image by Bahnfrend on Wikimedia Commons

Collections: