NAB, CBA, ING, BOQ, YBR pass on rate cut

Lenders will reduce standard variable home loan rate to 5.88% from August 12.

National Australia Bank Ltd, Commonwealth Bank, ING Direct, Bank of Queensland and Yellow Brick Road have passed on the central bank's quarter of a percentage point rate cut in full to its borrowers.

NAB will cut its standards variable home loan rate by a quarter of a percentage point to 5.88% from August 12.

The move comes after the Reserve Bank of Australia cut its cash rate to a historic low of 2.5%.

The Commonwealth Bank will reduce interest rates effective August 14 on its standard variable home loan account by 0.25% to 5.9% per annum, and will also pass on the full cut on its residentially secured better business loan.

"This is a balanced decision, and takes into account both domestic and offshore factors," CBA said.

 ING Direct will lower the interest rate on its variable mortgages by 0.25% to 5.22%, effective Friday 23 August.

"The RBA cash rate is one element considered however, the bank’s funding position was the driver of the decision," ING said.

Bank of Queensland has passed on the rate cut in full, cutting its standard variable home loan rate to 6.01% and its business loan rate to 7.5%.

Yellow Brick Road Holdings, which has teamed up with Macquarie Group to challenge the dominance of the Big Four in the mortgage market, cut its Rate Smasher and Empower home loan rates to 4.74% and 4.95% respectively.

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