NAB home loans: Product information for 2019

Your home loan is likely to be the biggest investment you’ll ever make, so it’s important to have choices on how to structure your loan and features to manage your money.

NAB home loans are all about embracing life’s possibilities¹. From first home loans, to renovating, refinancing or property investment loans, you can compare features and benefits to find the NAB loan to suit the stage you’re at.

Your choice of home loan features

Whether you’re a first home buyer or a seasoned property purchaser, it’s important to understand the types of home loan features you have available. Comparing NAB home loans will give you an idea of what features are important to you, and what you could live without.

Do you want to redraw funds? Do you want to make extra repayments? Here’s a list of NAB’s home loans packages currently on offer in June 2019:

• NAB Choice Package: Comes with no application, annual card or monthly service fees²
• NAB Tailored Home Loan: Comes with the option of being variable or fixed rate, and you can even take out a split home loan (which is two different loans for the same property with one application fee)³
• NAB Base Variable Rate Home Loan: Gives you the ability to make additional payments, helping you pay your loan off faster and save on interest. Additionally, repayments are flexible and can be made weekly, fortnightly, or monthly⁴

Home loan structures to work for you

Depending on how much you want to borrow, NAB home loan structures can include⁵:

• Principal and Interest (each payment reduces the original amount you borrowed – the principal – and covers your interest)
• Interest only (you pay only the interest payments, so repayments may be lower, but you won’t reduce the principal amount)
• A split of interest only and principal (you will have two smaller loans structured as principal and interest and interest only)
• Line of credit loans⁶

NAB home loans offer a range of ways to structure interest only loans³. Choices include a 5 years interest-only term in arrears (you pay the interest over the 5 years like a normal mortgage payment, or a 10 year interest-only term for investors which can be paid in arrears or in advance.

Depending on your situation, you may also have tax benefits from using an interest-only structure on your investment property⁷. Independent financial advice is always recommended to make the best choices on your home loan.

Line of credit options

Some NAB home loans feature a line of credit facility⁸. Your property is used as security, and you have access to an overdraft as you need it. An overdraft is like a loan, but you won’t pay interest on it unless you access the money. Comparing NAB home loan options will show you which offer a line of credit.

Steps to home loan success with NAB

There are a number of important factors when you apply for a NAB home loan. Some of these include⁹:

• Your income: how much you earn
• Your expenditure: how much you spend
• Assets: things you own like an existing property or car
• Debts: what you owe, including credit cards, and personal loans

But savings and credit history can boost your chances of a successful application.

Online conditional approval

Once you’ve compared NAB home loans and found your a product suitable for you, you can apply online for conditional approval¹⁰. Conditional approval from NAB means you’ve been approved in principle for a certain amount based on the information you’ve provided. When you find your property, you’ll have to meet some conditions for the loan to be unconditionally approved.

It can make a big difference to have conditional or pre-approval for your home loan when it’s time to make an offer, and negotiate prices on the property you want.

It’s also a smart way to keep yourself on track with how much you can afford to spend, and plan ahead for your budget knowing what your repayments are likely to be.

NAB home loan conditional approvals generally last for 90 days¹⁰, but you can reapply if you don’t find the property you want in that time.

iSelect is not currently offering a home loan comparison

Sources:
1. https://www.nab.com.au/personal/home-loans
2. https://www.nab.com.au/personal/home-loans/nab-choice-package
3. https://www.nab.com.au/personal/home-loans/nab-tailored-home-loan
4. https://www.nab.com.au/personal/home-loans/nab-base-variable-rate-home-loan
5. https://www.nab.com.au/personal/life-moments/home-property/buy-first-home/loan-types
6. https://www.nab.com.au/personal/home-loans/nab-portfolio-facility
7. https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/interest-only-mortgages
8. https://www.nab.com.au/personal/life-moments/home-property/invest-property/choose-loan
9. https://www.nab.com.au/personal/life-moments/home-property/buy-first-home/application-process
10. https://www.nab.com.au/personal/life-moments/home-property/buy-first-home/pre-approval