National Australia Bank and ANZ have cut their variable home loan rates by 0.25 per cent, following the lead of ME Bank, Bank of Queensland, the Commonwealth Bank and Westpac.

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NAB made the announcement on Twitter, saying: “We are pleased to announce that we have cut our standard variable rate to 5.63%, the lowest in almost 40 years.” The bank said this would save customers $62.50 a month on average.

ANZ’s new variable rate is also 5.63 per cent, the lowest of the big four. Commonwealth Bank’s variable rate is now 5.65 per cent, while Westpac’s is at 5.7 per cent.

Despite cutting rates, home loans from the big four are by no means the cheapest on the market. According to finder.com.au, ING Direct offers the cheapest mortgage rate at 4.97 per cent.

ME Bank’s is also considerably lower at 5.13 per cent, while Bank of Queensland’s is 5.5 per cent.

Altogether 18 banks have now lowered their variable mortgage rates in line with the Reserve Bank.

So far the big banks have not said whether they will cut rates on credit cards and savings accounts.