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NAB Owner Occupied Home Loan from 1.98% 3 Year Fixed and $2,000 Cashback

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NAB Owner Occupied Home Loan from 1.98% 3 Year Fixed and $2,000 Cashback
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Store RepLoan Base @ Loan Base on 22/02/2021 - 10:22 nab.com.au (714 clicks)
Last edited 22/02/2021 - 16:53 by 2 other users

NAB has just announced new rate cuts including a 1.98% 3 Year Fixed Owner Occupied product.

Please see current NAB rates below.

Owner Occupied P&I < 80% LVR

  • 1 Year Fixed - 2.09% (4.16% CPR)
  • 2 Year Fixed - 2.04% (3.99% CPR)
  • 3 Year Fixed - 1.98% (3.83% CPR)
  • 4 Year Fixed - 1.98% (3.69% CPR)
  • 5 Year Fixed - 2.24% (3.66% CPR)

Investment P&I < 80% LVR

  • 1 Year Fixed - 2.54% (4.73% CPR)
  • 2 Year Fixed - 2.44% (4.54% CPR)
  • 3 Year Fixed - 2.44% (4.37% CPR)
  • 4 Year Fixed - 2.94% (4.38% CPR)
  • 5 Year Fixed - 2.94% (4.28% CPR)

Investment IO < 80% LVR

  • 1 Year Fixed - 2.69% (4.81% CPR)
  • 2 Year Fixed - 2.59% (4.62% CPR)
  • 3 Year Fixed - 2.59% (4.45% CPR)
  • 4 Year Fixed - 3.09% (4.44% CPR)
  • 5 Year Fixed - 3.09% (4.32% CPR)
Fees
  • $0 upfront fees
  • Ongoing fee of $395 per annum for the Breakfree package
  • Includes credit card with annual fee waiver
NAB Cashback Conditions
  • Requires $250k minimum lending
  • $2,000 for refinances
  • Must settle by 30th April
Variable Rates

As mentioned above, we can apply for variable pricing discretions. Please get in touch to discuss these as we cannot post them online.

Alternatives

Depending on your total utilised lending size and LVRs, we can offer a number of alternative lender options with lower fixed rates and lender cashbacks as high as $4,000 for a single property (potentially higher cashbacks if you refinance/purchase additional properties). Please reach out to discuss your options.

Comparison Rates

Any quoted comparison rate is only true for the example given and may not include all fees and charges. Different terms, loan amounts or fees may result in a different comparison rate. Comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.

As a broker, we can also apply for variable pricing discretions - for both variable loans and the variable revert rate on fixed loans.

HOW TO APPLY

Our team is here to help, and will work to ensure we obtain the best pricing discretions possible for any variable rates (including the revert rate from the fixed product). You can lodge an enquiry via our platform here - https://loanbase.com.au/compare-home-loans-fva, or contact one of our brokers directly with their details below:

Andrew Loucas, Email: [email protected], Calendar link: https://calendly.com/loanbase-andrew/quickchat
Leo Gonzales, Email: [email protected], Calendar link: https://calendly.com/loanbase-leo/initial

Loan Base Pty Ltd (ABN 95 162 141 915) · Australian Credit Licence Number 508 308
Head Office: Level 1, 1-5 Link Road, Zetland, NSW, 2017. Phone: 1300 512 377.

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closed Comments

  • Phoebus on 22/02/2021 - 10:28
    +4

    I'm not sure why you'd wanna fix your interest rate when interest rates are going down.

    • NatoTomato on 22/02/2021 - 10:38
      +1

      I'd assume that's why they are trying to give cashbacks to incentivize

    • Cluster on 22/02/2021 - 10:44
      +5

      There is a floor somewhere. Other banks are offering 1.75% fixed for three years. Do you think next year they'll be offering 1.5%? 1.25%?

      According to the RBA's massaged inflation figures we're running at 0.9%pa right now.

    • er1992 on 22/02/2021 - 10:46
      +3

      Do you actually think the rates will be going down any further tho?
      The property market is having its biggest boom in a long time and the FOMO doesn't seem to be stopping. The vaccine is here and unemployment is going down. Sure this entire house of card is built on credit and record levels of debt but then again, the Gov will never let it all unravel. I think Lowe also said no rate cuts being considered anymore last time. I just don't see another rate cut happening.

      • pingMarky on 22/02/2021 - 17:35

        If you look overseas for examples yes, interest rates historically can go lower.

        • 1st-Amendment on 23/02/2021 - 11:05

          Different countries, different markets, different regulatory environments.
          No-one has a crystal ball, but with pandemic will end sooner or later and I'd expect a big bounce when that happens. They could go lower, or they could go higher…

    • singlemalt72 on 22/02/2021 - 10:49
      +3

      Rates don't go down forever.

    • PainToad on 22/02/2021 - 11:00
      +3

      Hopefully they go up soon. Low rates, Super cash in and the 5% deposit BS is driving up the market at an unsustainable rate.

      It’s a house of cards. So many people buying property currently who clearly have no idea what they’re getting into and haven’t had to work hard to get into the market.

      Open houses at the moment are filled with very young people who clearly haven’t saved a cent in their life’s and are only there because of schemes and handouts.

      • sistermay on 22/02/2021 - 12:32
        +3

        They buy because a lot of times, it is only slightly more than the rent they are paying but they are now paying off their own home instead of someone else's mortgage, plus the interest rate is so low a lot of the retirees who used to rely on interest income for a living see their income slipping away so they all going back to the housing market, at least you buy with no debt (for retirees) with a known yield of today, its brick and mortar so its safer than a piece of paper called stock. At least the circle of friends, retired relatives told me why they are buying properties so spread that across the nation I think that's a pretty accurate picture.

        • PainToad on 22/02/2021 - 13:40
          +2

          it is only slightly more than the rent they are paying but they are now paying off their own home instead of someone else's mortgage

          Except.
          1) Building insurance
          2) Rates
          3) General maintenance and moving in and finding nothing works (new hotwater system, leaking showers, aircon etc.)
          4) The risk of buying a lemon (properties are being listed at the moment that would of never of sold in there current state 6 months ago because of obvious structural issues, yet clueless kiddies are snapping them up on the first weekend. Some are falling through, according to the agents because of "finance" but clearly it was building and pest. Bet there are some idiots out there not even doing building checks at the moment).
          5) New fences (lot of ex rentals are being sold at the moment with atrocious fences). Bet neighbors come knocking when they find out it's no longer rented (less likely to piss of your neighbor and say no when you live next to them compared to a landlord living somewhere else).
          6) Renting is a 6/12 month commitment. I bet a lot of the couples buying at the moment have only been together for a few years (if that). Breaking a lease isn't a huge financial loss. Selling a house just after buying because of relationship breakdown will most likely result in a big financial loss.
          7) Not being able to afford your lease because of circumstances changing means you find a new cheaper rental. Not being able to afford a mortgage means you're eventually being forced to sell your house (again, if in a short time, most likely resulting in a big financial loss).
          8) Prices are sky high at the moment. If the bubble bursts, many people are going to be left with negative equity and only having paid a low deposit (not a good combination).

          • wrjcu on 22/02/2021 - 13:50

            @PainToad: 4) The risk of buying a lemon (properties are being listed at the moment that would of never of sold in there current state 6 months ago because of obvious structural issues, yet clueless kiddies are snapping them up on the first weekend. Some are falling through, according to the agents because of "finance" but clearly it was building and pest. Bet there are some idiots out there not even doing building checks at the moment).

            Saw one of these recently bought, what does the person who bought the lemon do? Lists the same house for 100k more, good luck to that unlucky person who doesn't get an inspection.

            • PainToad on 22/02/2021 - 13:54

              @wrjcu: I'd also be concerned that building inspections are being rushed because of the demand at the moment.

          • 1st-Amendment on 23/02/2021 - 11:25
            +1

            @PainToad:

            8) Prices are sky high at the moment. If the bubble bursts, many people are going to be left with negative equity and only having paid a low deposit (not a good combination).

            I'm not saying this can't happen, but I've been hearing this same comment for the last 30 years by people who missed out.
            There is some crazy speculation out there, especially in otherwise shit locations, but Australia has such few blue chip locations that the good suburbs are unlikely to ever burst.
            The risk you run by gambling on this being a bubble is that the market moves faster than you can keep up. That is a far higher risk IMO, especially in a suburb that you are happy to live in long term.

      • Hendrix on 22/02/2021 - 18:49

        I have been around a while and there has always been talk of a bubble and prices dropping, but it never happens prices just keep on going up? Sometimes there is a slight correction then the market comes back stronger.

      • 1st-Amendment on 23/02/2021 - 11:10

        It’s a house of cards. So many people buying property currently who clearly have no idea what they’re getting into and haven’t had to work hard to get into the market.

        How do you know how hard a person has worked simply by looking at them at an open home?
        There's a simple rule for real estate, they keep making more people but they aren't making more land. Maybe those people have more of an idea than you about the effect of fixed supply and ever increasing demand?

    • ndenham on 22/02/2021 - 11:25
      +2

      Yeah but variable rates haven't trended down anywhere near as much due to the RBA's bond buying program incentivising Banks to offer attractive fixed rates.

      So given the option of paying 2%+ for variable or <2% for fixed people are rationally choosing the latter. Long term the fixed rates may go a bit lower but how long does that take and how much money do you loose in the interim while you wait.

    • TimApple on 22/02/2021 - 13:55
      +1

      You can fix it for a year. Then next year fix it again. Fixed rates right now are a good 0.5-0.7% cheaper than variable, so why not.

  • strike1 on 22/02/2021 - 10:48

    Thanks OP!

  • Kamppinator on 22/02/2021 - 10:48

    Shocking comparison rates though. Interest rate alone is not the only factor to take into account and it seems banks are scoring their money through other fees instead

    • Whatisthatvelvet on 22/02/2021 - 11:22
      +9

      Comparison rates for home loans are based on a $150,000 loan over 25 years.

      So basically after the fixed term ends you revert to the standard variable rate for the remaining 20 odd years, which no-one every really does, making the comparison rate alot higher than what it would be if you refinance or renegotiate after the 1-5 years.

      • Kamppinator on 22/02/2021 - 11:35
        +1

        Makes more sense then

    • Coley on 22/02/2021 - 12:21
      +2

      Comparison rates for a 3 year fixed rate home loan is literally the last thing you should use as a comparison. All it flags is how high the variable rate is after the fixed period ends, but most people will refinance or renegotiate at this point anyway.

  • [Deactivated] on 22/02/2021 - 12:11

    What is the current variable rate? If I came off a previous 3 year fixed rate period today what would the interest rate be?

    • Store RepLoan Base @ Loan Base on 23/02/2021 - 09:40

      Hi infy, you'd have to double check with the broker or banker who set you up with the loan and double check what product you are on. Assuming you are on the "Choice" package, I believe you'd revert to nab's standard variable rate for your loan type (e.g. owner occupied principal and interest), less an automatic discount of up to 0.90%.

      With that said, we can submit a pricing request on your behalf upon expiration of a fixed rate through us and get a much better discount approved automatically OR re-fix at a lower rate OR refinance elsewhere, so provided you are pro-active with your loan management, you should never really need to just pay the default revert variable rate after your fixed rate expires.

  • irmalik on 22/02/2021 - 12:25

    Why is the comparison rate so high? Does it mean you will actually pay more monthly?

    • Store RepLoan Base @ Loan Base on 23/02/2021 - 09:44

      Hi irmalik, this is because comparison rates are based on taking out a $150,000 loan and holding it for 25 years with no re-negotiation done at any point in the future.

      For this reason, the comp. rates on the nab products here are high for two main reasons:

      1.) The comparison rate assumes that you just let your fixed rate expire to the "default" revert variable rate and pay this rate for the remainder of your assumed 25 year loan term. In reality, very few people actually pay the revert rate, since it is very easy to get a better variable rate discount approved after your fixed rate ends (we have a tool on the nab broker site that automatically approves better rate discounts upon submission).

      2.) Loans with ongoing fees (eg nab's $395 package fee) tend to have higher comparison rates, because $395 pa is a significant amount relative to a $150k assumed loan in calculating comparison rate - but it is far less significant at higher loan balances.

      Therefore we feel that comparison rates are rarely a useful tool for comparing mortgages, unfortunately.

  • Shermanpk on 22/02/2021 - 13:58

    It's looking extremely unlikely that rates will go up in the next few years.

  • Hendrix on 22/02/2021 - 18:47

    I hear a lot of people talking how the comparison rate is for a $150,000 loan so if you have a higher loan you would be better off. My understanding is that the comparison rate includes the higher rate that is reverts to once the fixed period is over. So wouldn't you be worse off with a higher loan. Unless you switch lenders once the fixed period is up

    • Store RepLoan Base @ Loan Base on 23/02/2021 - 09:46

      Hi Hendrix, the fact that the comp rate is based on an assumed $150k loan balance is relevant when ongoing fees are factored in; for example, a $395 pa ongoing nab choice package fee represents quite a high percentage of a $150k loan balance, but quite a low percentage of a $500k + loan balance.

      Furthermore, it is very simple to get a better rate discount approved after your fixed rate expires (or move to another lower fixed rate or refinance elsewhere, as you've suggested) - but this possibility is not able to be included in the comparison rate, which is why the comparison rate is of limited use in reality.

  • Duram on 23/02/2021 - 09:33

    How are NAB for releasing equity as part of the refinance for investing in shares?

    • Store RepLoan Base @ Loan Base on 23/02/2021 - 12:34
      +1

      They are not bad if it's not a significant cash out amount; I believe they only ask for further verification when cash out amount is over $250k, but they can request further verification, information, documentation (eg signed financial planner or accountant letter) at any level at their discretion. Alternatively, we have a number of other lenders on our panel that are more generous with unlimited cash out up to 70% - 80% of your home value, all at owner occupied rates as low as 2.29% pa variable, with no verification required - please reach out if you'd like to discuss your options.

  • 1st-Amendment on 23/02/2021 - 11:16

    What are others getting for rates at the moment?
    NAB at 1.98% over 3 years is better than CBA at 1.99% fixed for 4 years which is a little too long to be locked in IMO.
    Athena have 2.29% variable which seems to be very competitive.

    CBA is giving me 2.78% which is a bit of a rip, but my loan is quite low and I plan to have it paid off next year so it's not worth the hassle of all the paper work to change it at this point. I'd be interested in how other compare

    • kulprit on 23/02/2021 - 15:14

      Athena doesn't have an offset account unfortunately.

      • 1st-Amendment on 23/02/2021 - 15:39
        +1

        I don't get what is so hard about an offset account, you'd think would be a standard offering these days.

  • Store RepLoan Base @ Loan Base on 23/02/2021 - 12:36

    St George is actually doing 1.89% pa fixed for 4 years, if your loan is under 60% LVR (1.94% if it's between 60% and 80% LVR) - along with a $4k refinance cashback, so we've been writing a bunch of that lately.

    Alternatively, Suncorp is doing 1.89% pa fixed for 2 years, but no cashback offer at the moment.

    • kulprit on 23/02/2021 - 15:13

      I need to find that sweet spot. Cashback, a good rate with an offset. And a good app experience with osko etc. Thinking maybe 86400 at the moment. Or possibly me bank.

    • RichieVn on 02/03/2021 - 16:46

      I do not see this on their website for St george. where can i get 1.89%?
      2.04% p.a.
      1 year fixed rate 3.51% p.a.
      Comparison rate1
      2.04% p.a.
      2 year fixed rate 3.41% p.a.
      Comparison rate1
      2.04% p.a.
      3 year fixed rate 3.33% p.a.
      Comparison rate1
      1.94% p.a.
      4 year fixed rate 3.21% p.a.
      Comparison rate1

    • Trendyoz on 08/03/2021 - 18:16

      If i am an existing customer with westpac, am I eligible for st George cash back?refinancing from cba

  • AAA111 on 27/02/2021 - 19:02
    +1

    HSBC have a pretty good deal atm.

    • hongd on 28/02/2021 - 11:03

      Thank you. Found it really good. 1.88% 2-year fix + $3288 cash back

    • RichieVn on 03/03/2021 - 14:54

      hmm it seemed like a very average deal

      • AAA111 on 03/03/2021 - 18:47

        Can you please let me know of any better deals?

  • deeeno on 15/03/2021 - 11:09
    +1

    BoQ, 2.19% 1 year fixed with offset (yes, full offset with a fixed product) + $3k cashback.

    $10 monthly fee.

    Worth depends on how much offset you have sitting around and also how willing you are to put up with their archaic website, also consider that in 1 year time you will be forced to refinance or eat a high variable rate.

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