NAB investor loan interest rate

The fixed term of my residential investment loan has just expiry and it converted into variable loan. The interest rate is too high (4.52%), compared to market rates.

Can I ask what the best interest rate/discount did you get from NAB for investor's variable loan?

 

The best I could get was 3.75% variable PI with LVR under 80% on 2 loans (300 & 195). Let us know if you can get cheaper rate. I told them I can get 3.5% with CBA but they will only match if I can show them something in writing from CBA. I can't because I was just bluffing. I can't refinance because I don't have a job.

 

I've had P&I investment results between 3.4% - 3.9%. Depends on a few things, loan size, LVR. Knowing how to ask and which lender to use as a comparison at what time is important.

Call a broker and ask one of us to do it for you. If you do this directly with the bank, they don't know the market and frankly they've got no reason to act in your best interests.

Pricing requests with most lenders takes me about 3 minutes to do whilst we talk on the phone. I don't get anything for it, but hopefully you'll think of who did help you the next time you need a loan.

 

NAB should be able to re-price that for you into the mid 3's depending on loan size / LVR.

They've recently re-cut their basic (no offset) product for investors at 3.39% P&I and 3.65% IO (<80% LVR). Plus introduced new cashback offers.

Only problem with all that is they're taking 11 business days to even pick up a new application.

 

Many cheaper options out there, do you have to stay with NAB?

 

Wow, 11 business days are a long time to begin a new application.
I wonder how long it would take them to complete the process as they will have to do verification and prepare loan documents etc..
I don't think they publish the timeframe on their website for some reason

 

When my NAB fixed loan period ended, it reverted to 4.71% IO. Was able to negotiate to 3.71% PI variable loan. I have two loans with NAB and LVR below 80. Took over a hour talking to a fool first, before they escalated it to someone with some brains.

 

I picked up the phone today and called @Peter_Tersteeg and he was able to get me a rate of 3.5% P&I variable with NAB which is 0.25% better than what NAB gave me (3.75%).

I highly recommend you contact Peter to see if he can also get you a better rate than your 3.71%. I couldn't believe how quickly he was able to do it. I'm very impressed. I thought I had a good broker but Peter was much more proactive and I'll be using him again in future. I'm giving my old broker the sack!

 

Yep Peter, he is awesome - patient and willing to help always.

Unrelated - what are NAB taking for a refinance application these days? Any chance of getting an approval result before NY if one applies this week?

 

Thanks Lucki.

The NAB's published turnaround times are currently 9 business days. Sorry, but I don't think the odds of getting an approval before the end of the month are very good.

This is one of the busiest times of the year and a lot of people (everywhere, not just the banks) are going to be checking out by lunchtime on Friday.

I actually don't have any plans for the holidays (first time in years). I'm thinking of working from home and trying to relax as much as possible.

 

On an investment loan, anything < 3.5% P&I I'd consider 'acceptable' in the current environment. If it has a 4 in front, definitely being ripped.

 

My application with NAB is 3.39% P&I for an IP.
The application is at file quality check at the moment. Does any one know if it gets to this stage, what are the chances that the application will be rejected?
I assume that if my circumstances (e.g. employment and health) are not changed, the application should go through soon.

 

That's an excellent deal for the NAB (or any mainstream lender with a variable rate). Once it gets to the file quality stage, it's almost certainly going to be approved.

 

Are Cash Bonuses considered income and therefore taxable?

NAB's Inv P&I rate of 3.39% with $4,000 cashback is pretty appealing.

I've currently got a loan with a different bank with a higher rate (w an offset). But I don't need the offset as I have another Inv loan with offset at 3.44%. So I'd just move my cash to offset a different loan.

The other thought is to move this loan to a non-bank such as State Custodians.

 

Can I ask how much total lend?

 

495k

 

I have 2 loans with suncorp, i don't think that both loans would meet the 80% unfortunately but not be too far off.

does NAB still do equity pulls to over 80%? is it worth refinancing if your over 80%?

My suncorp loans are around 4% and have just switched over to PandI

 

Have you had a valuation completed on the property/properties recently to know for sure?

Depends on a few things, if you're refinancing just for the lower rate then probably not worth it as LMI may negate any savings you make on the rate. If you're going over 80% LVR to pull equity to be invested in another property or something else then it might be worth while if it allows you to achieve what you want with the money.
The total amount of cash out allowed is limited over 80% LVR and need to have a good reason for it.

 

The LMI you'd pay (again) would likely outweigh the savings you'd make with a cheaper rate.

Suncorps fixed rates are fairly competitive. 3.19% P&I for 2 years fixed. This might give you cheaper rates and hopefully within 2 years your LVR would be at 80% or less to give you some flexibility to look around elsewhere.

Whilst there is an expectation that rates will drop during that time, I suspect they won't drop by that much. The main downside I can see is if you either expect to sell the property in the next 2 years or the risk of missing a cheaper fixed rate in the future.

 

We just re-negotiated with NAB at 3.39%.

Initially was offered 3.58 P&I. Escalated to team leader, then escalated again to a rates review department which called back on same business day.

Basically, our strategy was to keep stating that new loans are getting 3.39% with cashback, and asking for a match.

Background:

• 2 loans (1 of which is currently fixed)
• ~950k total
• Been with NAB for 5+ years.
• Perfect repayment record