Following the Reserve Bank of Australia’s Board Meeting yesterday, National Australia Bank confirmed its variable home loan interest rates would increase by 0.25% per annum.
NAB’s new standard variable rate will be 6.74% pa, effective Friday, 5 March 2010.
Lisa Gray, Group Executive NAB Personal Banking, said: “In the last month we have seen a surge in the number of Australians approaching NAB for a home loan. The uplift is across all our home loan brands, including an 100% uplift in applications in the broker market via our Homeside brand.”
“We attribute this to not only having had the most competitive standard variable rate for nine consecutive months, but also to the fact that Australians are recognising that NAB is looking to do things differently and bring more competition and choice for bank customers,” Ms Gray said.
NAB’s overall funding costs are expected to increase into 2010, driven mainly by the rising average cost of term wholesale funding and higher retail deposit costs.
“There are a number of factors we need to consider when setting our interest rates, and the forecast on funding costs will be one we will be watching closely to ensure we maintain a sustainable competitive position. We will maintain our commitment to being transparent with all of our interest rate decisions,” Ms Gray said.