What are the current interest rates?
You can find the latest home loan interest rates in our interest rates section.
What’s the difference between a fixed and variable rate home loan?
A fixed rate loan means that the interest rate, which applies to your loan, will stay the same for the fixed rate period. For example, if you take out a 3 year fixed rate home loan, the interest rate will be the same for all 3 years, which means you know exactly what your repayments will be.
A variable rate loan means that the interest rate could change throughout the life of the loan. For example, if the Reserve Bank of Australia increases or decreases official interest rates, these changes will typically affect the variable interest rate that applies to the loan.
What’s the difference between a ‘principal and interest loan’ and an ‘interest only’ loan?
A principal and interest loan means that when you make your home loan repayments, the repayment is paying off the interest charged for that week/fortnight/month and part of the principal (the amount that you borrowed).
With an interest only loan, the repayment only pays off the interest charges. The principal is then paid off in full at the end of the loan period or gradually paid off when you switch the loan to ‘principal and interest’.
What’s the difference between a line of credit and a standard home loan?
A line of credit is similar to an overdraft facility in that you have access to a pre-approved credit limit (e.g. $150,000), which you can access at anytime through a transaction account. You can use as much or as little as you like and only pay interest on what you’ve used. There is no regular repayment schedule and no principal repayments are required unless the credit limit is reached or cancelled.
With a standard home loan, interest is charged on the principal (the amount you still have owing) and a regular repayment schedule is required.
How does 100% Offset work?
NAB 100% Offset is an optional feature of the NAB Tailored Home Loan - Variable Rate that 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 NAB Tailored Home Loan (Variable Rate) of $100,000 and $10,000 in your "linked" deposit account, you would only be charged interest on $90,000 of your loan amount. By having your salary as well as your savings deposited directly into your "linked" deposit account you could save even more.
NAB 100% Offset may also be a tax effective arrangement because you do not earn any interest on the amount in your "linked" deposit account which would normally have been treated as income and subject to taxation at your normal marginal rate.
Are repayment holidays available?
If you are ahead in your contracted home loan repayments, you can apply for a home loan repayment holiday. Your home loan repayment holiday can be from 2-12 months.
To find out if you're eligible to take a break from making your contracted home loan repayments please contact your personal banker or call 13 22 65 from 8am to 8pm AEST, 7 days a week.
Do NAB home loans have redraw?
Yes. If you’re ahead on your scheduled repayments, you can redraw the extra funds if eligible. Redraw is available with all NAB variable rate home loans. For fixed rate home loans, redraw is only available at the end of the fixed rate period (i.e. when the rate becomes variable). The minimum redraw amount is $2,000.
To redraw funds you can contact your personal banker or call 13 13 12, 8am to 9pm AEST, 7 days a week. If you have a redraw facility established for your home loan then you can also use NAB Telephone Banking and NAB Internet Banking to redraw funds.
Fees and charges are payable. Full details of fees and charges and the relevant terms and conditions are available on application.
Can I use NAB FlexiPlus Mortgage for my business?
No. The preferential rates and other features offered by NAB FlexiPlus Mortgage are intended solely for personal use.
How does a NAB FlexiPlus Mortgage, NAB Home Equity Line of Credit (HELOC) or NAB Portfolio Facility differ from a normal overdraft?
A NAB FlexiPlus Mortgage, NAB HELOC or NAB Portfolio Facility is an all-in-one wealth management facility, which incorporates a line of credit, along with other features a normal overdraft doesn't provide. The line of credit portion of the facility operates much like an overdraft, but your credit limit is higher (up to 90% of the market value of your property) and the interest rate is lower than most overdrafts and personal loans. You access the money through a transaction account and there are no NAB transaction fees.
Can NAB home loans be used if I’m building my home?
Yes. Several NAB loans have a special ‘building conditions’ feature specifically suited for building or renovating. The feature allows for your loan to be progressively accessed (drawn down) as the building progresses. This is a great way to save money as you only pay interest on the funds as you use them. This feature is available on the NAB Base Variable Rate Home Loan, NAB Introductory Rate Home Loan (Variable) and NAB Tailored Home Loan (Variable).
NAB FlexiPlus Mortgage, NAB Home Equity Line of Credit and NAB Portfolio Facility are also great ways to manage building or renovating as they give you a credit limit (approved loan limit), which is accessed through a transaction account. The money is available as and when you need it, and you can use as much or as little as you want, and only pay interest on what you use.
Can I split my loan into 2 products, for example a fixed and variable rate loan?
Yes. To get the right balance of certainty and flexibility you can choose to split your borrowings between one or more products. You can take out 2 different loans for the same property with just 1 application fee.
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