National Australia Bank (NAB) has revealed that it will not raise interest rates like ANZ, Commonwealth and Westpac.
NAB has chosen to keep its standard variable mortgage rate at 5.24 percent, the lowest rate announced.
NAB CEO Andrew Thorburn emphasized that the longer they keep their rate on hold, the more time their customers will benefit.
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National Australia Bank (NAB) has revealed that it will not raise its interest rates as ANZ, Commonwealth and Westpac despite its huge profits of one billion dollars
"Our commitment is to listen more and act differently, and this is another step in this direction," said NAB Executive Director Andrew Thorburn.
"We will continue to monitor market conditions and financing."
The video ad also thanked the customers for their banking options.
NAB says that a client with a $ 500,000 mortgage would have had to pay an additional $ 47 per month if the mortgage loan rates had increased by 15 points (0.15 percent).
In an attempt to rebuild the trust of its customers, the NAB has chosen to keep its standard variable mortgage rate at 5.24 percent, the lowest rate announced.
The bank is proving to be a popular choice for consumers as it has granted concessions to farmers' borrowers in the wake of drought and relief conditions for small business borrowers.
NAB recently came under scrutiny in the Royal Commission when they were confronted with examples of failing to serve their clients with honor.
"By focusing more on our customers, we build trust and support, and this creates a more sustainable business," said Mr. Thorburn.
Westpac was the first to raise interest rates on variable-rate mortgage loans that hit its clients with higher rates despite making huge profits.
The ANZ Banking group and the Commonwealth Bank announced their rate hikes on Thursday, a few hours later.
ANZ and CBA join Westpac to raise interest rates on variable interest rates on mortgage loans, even though the official cash rate remains unchanged for two years.
Although ANZ recorded earnings of $ 6.9 billion for the 2016-2017 fiscal year and the Commonwealth Bank recorded a profit of $ 9.23 billion for the 2017-2018 fiscal year.
The ANZ Banking group and the Commonwealth Bank announced their rate hikes on Thursday in a matter of hours from each other
The ANZ announcement was made through its official website on Thursday and stated that the increase was due to an "increase in wholesale financing costs" and the current market climate.
However, farmers affected by the drought were given some relief as the bank also announced that the change in rates would not affect the rates for clients of mortgage loans in the regional Australia declared as drought & # 39;
"There is no change in the effective rates of our mortgage loan clients in the drought declared in the region of Australia that benefits more than 70,000 of our clients," said Ohlsson.
"We wanted to do our part to keep cash in the regional cities affected by the drought and we hope this will also help families and small businesses in these areas."
The increase in variable interest rates for residential and residential investment loans in Australia is 0.16 percent, exceeding Westpac's 14 point increase.
The changes will not take effect until September 27, 2018.
Executive retail banking services of the Commonwealth Bank Group Angus Sullivan said that the Commonwealth Bank also made the decision after careful consideration & # 39;
Meanwhile, the Commonwealth Bank announced rate increases of 0.15 percent from October 4.
Both announcements come just a week after Suncorp and Westpac raised their interest rates on mortgage loans.
Suncorp Bank has revealed that it will increase its mortgage loans at a variable rate by 17 basis points and an increase of 10 basis points in loans for small businesses.
The big bank claimed that the price increase was reduced to "financing costs" despite the company's $ 1 billion profit in the last fiscal year.
Despite the rise of the Suncorp CEO, Cameron said (pictured) to raise a base salary of $ 2.1 million.
Suncorp CEO Michael Cameron reportedly earns a base salary of $ 2.1 million.
The former head of the GPT Group has also delivered generous profits and shares estimated at $ 6 million.
This is the second change in interest rates for Suncorp after customers suffered an increase in March of this year.
The next rise in Suncorp interest rates will arrive as early as September 14, 2018.
Suncorp Banking and Wealth CEO David Carter said it is unlikely that the Reserve Bank of Australia will raise interest rates until well into next year. But lenders will be affected by rising financing costs.
The Queensland bank has revealed that it will increase its variable rate mortgage loans by 17 basis points and an increase of 10 basis points in loans for small businesses.
"Since March, we have also witnessed a change in the outlook for the RBA cash rate, with a movement now not expected until well into 2019," Carter told Channel Nine.
"We recognize that any increase in rates will have an impact on the cost of living of our mortgage loan clients, however, our savings clients, many of whom are retired, have been supported by favorable deposit rates in recent months. ", He said.
On Wednesday, Westpac announced its plan to raise interest rates by 14 points on its standard variable mortgage.
This will mean that those with an average mortgage loan of $ 300,000 will receive an additional $ 35 in addition to their monthly mortgage payments, the bank said.