Hello All,
I m getting nab home loan for fixed rate of 3.88% for 2 years. Package fee of $395 per year. 350,000 reward points (worth $1800 according to nab website)
Is that a good deal?
Or if u can suggest something better.
Appreciate ur help.
Edit 1: this is offered through a broker. Loan Amount $320K+. LVR = 80%.
I think it would be nice to get an advice from a broker on loan products unless you can negotiate hard with bank/lenders yourself. Also, it would be good to check the repayment amount if interest goes up by up to 2-3%.
You may find a loan deal with lower interest rates but they come with a fine print and may not necessarily turn out a good deal in long run.
Go with any broker should get you that first anunal fee of $395 waived.
Look at the comparison rates not interest rate
That deal is okay depending on how you weight your preferences. Generally speaking you'd probably want to weigh up the following factors:
1. Rate: 3.88%p.a. is a little high for a 2 year fixed. If you were willing to deal with a smaller bank, such as Newcastle Permanent Building Society (which is 110 years old), you could get 3.64%p.a. for a 2 year fixed. If you weren't, the offer is sharp for a major bank.
2. Loan splits & functionality: In our experience, if you were considering splitting the loan with a variable proportion you'll probably find the pricing that NAB is offering for under $750k variables at present to be less than amazing. Other lenders, even other NAB business units, commonly offer cheaper variable rate loans than NAB is with its Choice Package at this moment (to most borrowers). If you weren't looking for an offset account or to have any variable split, that Newcastle Permanent loan mentioned earlier has no annual fee at 3.64%p.a. and Naritas offers it with a $1000 rebate to cover switching and/or government estab costs.
3. Are you first home buyer or are you refinancing? If you're a first home buyer NAB (as well as a number of other lenders) are are offering low rate promos at present (3.69%p.a. for the same 2 year offer you've mentioned to first home buyers as compared to the 3.88%p.a. you've been offered). If you were refinancing you may also be pleased to learn that there are other lenders offering upfront cashback (in place of points) at a similar price point to NAB. That being said, the NAB points offer is solid if you are happy to work the system to extract maximum value out of them.
Hope this helps.
don't let the big4 screw you.
other smaller banks have rates around 3.65%
search here:
http://www.infochoice.com.au/home-loans
What is the LVR?
It is an okay deal. However, the thing with NAB is that they do not allow the revert rate to be pre-negotiated. This can be a massive issue on LVR's above 80%. It essentially means more $$$ to refinance or change products.
A good fixed rate offer at the moment for O/O P&I is with Bank West. 3 years @ 3.74% per annum. Market leading on that term.
If you are sub 80% LVR…. An excellent product we are doing is Macquarie Bank at 3.74% p.a ongoing variable with 100% offset and unlimited free ATM access Australia wide. $395 packaged with c/c or no credit card + zero ongoing annual fees. No need for trail back either, as the rate includes zero trail commission.
do you have a link to the Macquarie bank deal? sounds pretty good
No-not advertised online. I can email you a credit quote, which breaks down the fees and product features. It must be P&I.
The private label is - Vow Home Loans and has zero ongoing fees (still has unlimited ATM access via debit mastercard), but no credit card.
Minimum loan amount is 250k.
Anyone have suggestion on the best way to use nab reward points?
very interested in this as well
is iot worth to get the spending card, or to just redeem it for velocity points
Loan size?