National Australia Bank has sparked a home loan rate war by undercutting Westpac’s interest rate rise of 45 basis points earlier this week, keeping their interest rate rise in line with the Reserve Bank’s increase of 25 basis points.
The interest rate rise will take NAB’s standard variable home loan rate to 6.49 percent, effective today.
In a statement earlier today, NAB slammed rival Westpac, which hiked its variable home loan rate by nearly double the amount the RBA nominated, a move that is certain to attract backlash from customers.
“Today’s announcement will see NAB customers paying $51 a month less in repayments than Westpac customers on an average $300,000 home loan,” NAB group executive Lisa Gray said.
Westpac has increased its standard variable home loan rate to 6.76 percent, effective tomorrow. This increase will see the bank pocket an extra $400 million a year in interest.