NAB: base variable rate VERSUS tailored home loan

Discussion in 'Loans & Mortgage Brokers' started by r3ckless, 6th Oct, 2016.

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  1. r3ckless

    r3ckless Well-Known Member

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    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
     
    r3ckless, 6th Oct, 2016
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    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.
     
    Peter_Tersteeg, 6th Oct, 2016
    #2
  3. albanga

    albanga Well-Known Member

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    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.
     
    albanga, 6th Oct, 2016
    #3
  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Colin Rice, 6th Oct, 2016
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  5. r3ckless

    r3ckless Well-Known Member

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    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!
     
    r3ckless, 6th Oct, 2016
    #5
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    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
     
    Jamie Moore, 7th Oct, 2016
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if you dont need offset then Jamie's lender also offers slightly better serviceability and rate

    ta
    rolf
     
    Rolf Latham, 7th Oct, 2016
    #7
  8. Corey Batt

    Corey Batt Well-Known Member

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    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.
     
    Corey Batt, 7th Oct, 2016
    #8