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

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?

 

Because they have a different risk profile.

 

I received one and my rate stayed the same..

I am on interest only IP loan

 

Shouldn't interest only paying customer be more riskier?

 

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

 

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...

 

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)

 

Same. 5.05% AFTER discount. What a jip.

 

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.

 

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.

 

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

 

I assume thats NAB broker?
LVR and total loan size?

 

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

 

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.

 

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

 

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.

 

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

330K loan - 90% LVR. 5% IO

 

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?

 

@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.

 

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