Join Australia's most dynamic and respected property investment community

NAB: base variable rate VERSUS tailored home loan

Discussion in 'Property Finance' started by r3ckless, 6th Oct, 2016.

Tags:
  1. r3ckless

    r3ckless Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    62
    Location:
    Sydney 2219
    I've been on the NAB website for the past 10 minutes, and looking to see if I have missed anything.
    Looking at taking out a small $500k P&I, owner occupied loan with NAB. The intent of this loan is to just pay it off early, with no penalties, minimise annual/ongoing fees, and obviously have the lowest interest rate possible as this is non-deductible debt.

    Tailored choice home loan:
    - 85bps off the SVR
    - annual package fee of $395

    BVR home loan:
    - 4.10% currently
    - $600 est fee

    Both home loans are variable, offer redraw, no penalties etc.

    Could someone please advise on any other differences between the two loan products?
    I'm also guessing I am not able to establish multiple offset/transaction accounts in addition to the redraw. This would be ideal, but not at the cost of paying for a package etc. I am not interested in a CC, insurance products etc as I have that with my main bank, solely utilising NAB as they are able to provide me this additional loan.

    Cheers
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,107
    Location:
    Melbourne, Nationwide
    The Choice package has an offset account, the basic variable rate home loan doesn't.

    Consider calling a broker. There's a lot better deals (including with the NAB) than what you've quoted.
     
  3. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,117
    Location:
    Melbourne
    As Peter said there are loads up better options than using NAB. Heck if it's a set and forget home loan go to an online bank and get the. Heaps at dirtiest rate you can.
     
  4. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,083
    Location:
    Perth
  5. r3ckless

    r3ckless Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    62
    Location:
    Sydney 2219
    The underlying reason to go with nab is because of their openness to lend!

    I don't want to engage my broker again whom is actually a mate until I've got financials to proceed with the pre approval.

    Colin! My lvr will be well within NLM, at around 55-60%. I'm not sure if you seen my other thread but I needed to find a lender that was open to assessing existing debt on IO rather than P&I which would have blown my servicing pity out of the water!
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,159
    Location:
    Canberra and Sydney
    You should get sub 4% rates for $500k owner occ P&I via Nabs home plus product. Cheaper ongoing fee then their choice package too - only $10 per month

    Cheers

    Jamie
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Gold Coast
    if you dont need offset then Jamie's lender also offers slightly better serviceability and rate

    ta
    rolf
     
  8. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Adelaide, SA
    Nah - Jamie would be referring to NAB's homeplus product, where you can get a carded rate of 3.99% variable with offset.

    This is all dependent on needing to go with NAB in the first place, if borrowing capacity/structure doesn't require it there are more effective options out there. We've been pushing through a lot of 3.69-3.74% owner occupiers loans at the moment for non investors/investors not looking to expand into more property.