Australia's NAB drops variable mortgage rate by 20 basis points

SYDNEY, Oct 5 (Reuters) - Australia's National Australia Bank Ltd on Friday cut its variable mortgage rate by 20 basis points after the central bank dropped its benchmark rate by 25 basis points earlier this week.

NAB is the first of the big four lenders to pass on the rate cut partially. Mortgage rates are very sensitive in Australia where one-third of the population have a mortgage and banks draw criticism for not passing on the full cut.

A 25 percent basis points cut reduces monthly repayment on a A$300,000 loan by about A$50.

(Reporting by Narayanan Somasundaram; Editing by Ken Wills)

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Keywords: NAB RATES/