What is a comparison rate?
When you see an advertised home loan rate, there are always two rates. The first is the interest rate, and the second is the comparison rate. The comparison rate includes both the interest rate and most fees and charges payable over the life of the loan, expressed as a single percentage figure. (But costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included and may influence the cost of the loan.)
What does redraw mean?
If you are ahead with your repayments, you may be able to withdraw extra money you've paid if you need it. This is called redrawing. You could use the money for a holiday or unexpected expenses. This feature is available on all NAB variable rate home loans.
What does offset mean?
Offsetting allows you to pay off your home loan sooner while keeping your savings separate. The money that you have in your transaction/deposit account is used to 'offset' your loan.
For example, if you had a home loan of $100,000, and $10,000 in your 'linked' transaction/deposit account, you would only be charged interest on $90,000 of your loan amount. So the lower interest charge can save you money and help you pay back your loan faster.
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NAB Tailored Home Loan (Variable) has a 100% offset feature.
What is a repayment holiday?
If you are ahead with repayments, you can apply to take a break from your repayments for a certain time period. You might be going on holiday or want some extra cash for renovations. Whatever the reason, all NAB home loans allow you to apply for a repayment holiday for between 2-12 months.
