The Reserve Bank has slashed interest rates by 25 basis points to a historic low of 2.75 per cent, the first reduction this year.
The decision followed a spate of soft economic data that increased calls by industry groups and other observers for a lower cash rate.
NAB was the first of the big four banks to lower its standard variable home loans. It cut the rate by 25 basis points to 6.13 per cent per annum.
Commonwealth Bank also passed on the full rate cut this afternoon, lowering its standard variable home loan rate to 6.15 per cent with effect from May 13.
Westpac lowered its rates just before 5pm, bringing its standard variable mortgage rate down by 25 basis points to 6.26 per cent, with effect from May 20.