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Nab just increased (they said updated) their Home Loan Rates

Discussion in 'Property Finance' started by Ranin999, 6th Apr, 2016.

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  1. Ranin999

    Ranin999 Member

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    It's a very confusing update, but seems like they just love confusing the customers anyway.

    Why would they increase the rates for Principal and Interest payment loans? and decrease the Interest only repayment loans?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Because they have a different risk profile.
     
  3. Coota9

    Coota9 Well-Known Member Premium Member

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    I received one and my rate stayed the same..

    I am on interest only IP loan
     
  4. Ranin999

    Ranin999 Member

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    Shouldn't interest only paying customer be more riskier?
     
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  5. devank

    devank Look, lets just get on with this, ok? Premium Member

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    They increased the rate but increased the discount by the same amount so there is no change.
     
  6. S0805

    S0805 Well-Known Member

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    I got IO as well....the rate remains the same. Letter mentioned they increased but decreased at the same time. Very confusing. was thinking of calling them to understand better...
     
  7. Hodor

    Hodor Well-Known Member

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    I just looked at the letter, 5.63%, are they kidding? I'm currently fixed until near the end of the year around 1% less than this.
    Loan was originally homeside, then NAB Broker, now all the letters just say NAB. Think I'll just refinance to save confusion (and $'s)
     
    Last edited: 6th Apr, 2016
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  8. Sonamic

    Sonamic Well-Known Member

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    Same. 5.05% AFTER discount. What a jip.
     
  9. Redom

    Redom Mortgage Broker Business Member

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    A few months ago most banks started having different prices for investors and owner occupiers.

    NAB didn't really have an accurate systematic way of tracking this, so they only instead adjusted prices to repayment type - that is Interest only or Principle + Interest. Their pricing wasn't based on what people did with their debt (purpose), but only on the repayment type.

    A few months later, they fixed this. Now they price on purpose and repayment type (Owner occupier/Investment AND repayment type).

    The flow of all this means that NAB customers are being notified of rate changes twice - while other lenders communicated the change back in November.
     
  10. Redom

    Redom Mortgage Broker Business Member

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    In saying that, NAB are a little more expensive than others.

    For those that applied for NAB loans in December and Q1 2016 - it may be worth sending a quick email to your broker about obtaining pricing.

    They've only just started re-pricing loans again a month or so ago. Their discounting existing loans that are out of whack with the market too - albeit not as much.
     
  11. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I have three interest only variable loans
    Loan 1 - 4.71%
    Loan 2 - 4.90%
    Loan 3 - 4.95%
    Is that out of whack??
     
  12. Redom

    Redom Mortgage Broker Business Member

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    I assume thats NAB broker?
    LVR and total loan size?
     
  13. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Loan 1: 211K (90% LVR) - 4.71%
    Loan 2: 516K(80% LVR) - 4.90%
    Loan 3: 446K (90% LVR)- 4.95%
     
  14. Redom

    Redom Mortgage Broker Business Member

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    Just checked some of the existing pricing FYI - for a 90% LVR and assuming total loan size of between 500-750k - you're looking at around 4.66%. If sub 80%, drop another 10 bps+.
    Its a bit random with NAB. CBA, St George and ANZ for example are a fair bit more predictable and transparent.
     
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  15. dabbler

    dabbler Well-Known Member

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    After 20 years of avoiding the majors, I was talked into a loan with NAB, so after loan taken have had 3 rate rises, they are literally a joke & they also wont look at re valuing even if you pay. They are about 1% clear of every other small lender I would use. So they are not attractive at all apart from spreading things around.

    Spend time on phone, only way to stay with them is if ok with locking in a rate, if you do that you can get near what the smaller players offer everyday, but locking the smaller ones will not get much more discount.

    So it looks to me, you need to lock if with them or go somewhere else if you need flexibility. Def not use them if I only intended to have one IP
     
  16. Redom

    Redom Mortgage Broker Business Member

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    Sorry posted at the same time - yes definitely those are out of whack.

    Ask your broker to submit a pricing request. They're willing to discount, so its worthwhile asking the question.

    With the pricing game - 'how and when' you ask often makes a difference to the result you achieve.

    The best how also depends on the bank.
     
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  17. S0805

    S0805 Well-Known Member

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    @Redom is this out of whack....(to your best knowledge)

    330K loan - 90% LVR. 5% IO
     
  18. Mumbai

    Mumbai Well-Known Member

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    350k loan - 90% lvr 4.63% PI
    392k loan - 80% lvr 4.63% IO
    332k loan - 80% lvr 4.63% IO
    430k PPOR loan - 90% lvr 4.36% IO

    Does this look OK or can I get better rates by refinancing?
     
  19. Redom

    Redom Mortgage Broker Business Member

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    @S0805 - if you stay with NAB you can likely get a little bit more out of it by asking (not much) - new lending is going for around 4.8 on that type of deal, so you may get 10 bps.

    @Mumbai - may not be worth refinancing - you've paid LMI, so the doubling up cost of it may trump any rate saving. But it is worth going to your NAB contact and getting them to reduce your rate for you or calling retentions. They'll do what they can to keep you and you'll get a fair saving with that type of loan size.
    On a side note, probably worth switching that IP to I/O and diverting extra repayments to the PPOR.
     
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  20. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @Mumbai you can get better rates simply by asking the NAB.