NAB has announced a reduction in its standard variable home loan interest rate by 0.25 percentage points per annum, effective from Monday, 25 August 2025.
Ana Marinkovic, NAB’s Group Executive for Personal Banking, commented on the decision following the Reserve Bank of Australia’s latest cash rate cut. “Today’s RBA cash rate cut is a welcome change that should boost Australian optimism.
“We expect consumer confidence to pick up as households benefit from lower interest rates, and businesses ramp up hiring and expansion, giving workers a stronger sense of job security.
“This comes at a crucial time to reinvigorate economic activity across Australia,” Ms Marinkovic said.
“For customers who choose to keep their repayments the same, this presents an opportunity to pay down their home loan faster.”
“And for those looking to reassess their repayments, we’ve made it simple to take advantage of the changes.”
To support customers with these changes, NAB has introduced a new self-serve repayment feature in its mobile app. This tool allows eligible home loan holders to request a repayment review quickly without needing to call or visit a branch. According to Ms Marinkovic: “If you want to lower your repayments, you can do it in under a minute, right from the NAB app.”
The process involves opening the NAB App, selecting the relevant home loan account, tapping ‘Manage’, choosing ‘Update your minimum repayment’, and then following prompts before agreeing for NAB to process the update.
Ms Marinkovic explained that “NAB doesn’t automatically reduce repayments when rates fall and that’s by design.
“Some people want to ease the pressure and reduce their repayments. Others want to keep them the same and get ahead on their loan.
“It’s your loan, your money and now, your choice.”
Recent data from NAB indicates that over 90% of customers opted not to change their repayments after the previous rate cut. Maintaining higher repayments could lead borrowers with typical loans—such as a $550,000 mortgage over 30 years—to save almost $80,000 in interest and pay off their loans two years earlier than scheduled.
“Whatever you decide, the important thing is that it’s your decision and now, it’s just a few taps away,” Ms Marinkovic said.
Customers seeking more information or wishing to calculate potential savings can visit nab.com.au or use features within the NAB App.