NAB Loan Guide

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National Australia Bank (NAB), is among the four biggest financial institutions in the country and the 50 biggest banks in the world.

National Australia Bank (NAB), is among the four biggest financial institutions in the country and the 50 biggest banks in the world.

The bank currently services the needs of 9 million customers in Australia in New Zealand, bundling infrastructure, businesses and personal financial needs.

Although the bank has roots dating back nearly 160 years, the official creation of the National Bank of Australia Limited didn’t take place until 1982, with the merging of the National Bank of Australasia and Commercial Banking Company of Sydney.

After the merger, the financial institution began expanding to various locations in Europe, Asia and America.
The bank continued to expand its influence until it became one of the largest financial
institutions in Australia.

  • Fixed-rate home loan/li>
  • Variable-rate home loan
  • Split home loan
  • Construction home loan
  • Line of credit loan
  • Investment home loan
  • Renovation loan

Many of the NAB loan options allow you to bundle your loan into a package with other banking services NAB offers. Take a look at the “Loan Types” section for an in-depth view of what you can expect from these loan products and packages.

Loans from NAB include a few features that customers can enjoy. A loan through NAB gives you access to offset accounts, low deposit loans, home loan packages, and more unique features.

Offset Accounts

Like a lot of financial institutions, NAB offers a 100% offset account feature for customers choosing a variable-rate loan. This means that you can save on interest by offsetting your loan with a bank account through NAB.

Fixed-rate borrowers are unable to access the offset account feature until their loan
transitions to variable-rate.

Low Deposit Loans

The NAB tailored home loan and the base variable rate loan allow you to borrow up to 95% of the home’s value. This benefit allows you to purchase a home sooner than you would have previously been able to.

Low deposit loans have their drawbacks, but there are some situations when a low-deposit loan is extremely valuable. Knowing that NAB allows you to obtain a loan with only a 5% deposit will be great news for some borrowers.

Home Loan Packages

NAB offers customers the ability to bundle financial products and save on both ends. There are two packages to choose from: the NAB choice package and the portfolio package.

These packages allow you to bundle a loan, transactional account, credit card, and insurance product to save money on fees and interest. Customers looking for multiple products from NAB will be in a position to save some money by bundling these services together.

NAB Choice Package

The NAB choice package allows you to bundle your tailored home loan or FlexiPlus mortgage facility with a credit card, transactional account and insurance package to receive a discounted rate.

The amount you’ll save on interest depends on how much you borrow, but you’ll also save on credit card fees, application fees, and monthly service fees. The insurance you purchase with this package can also help protect your assets if the worst happens.

There are several different loan types available from NAB. You can also choose to split your loan over multiple loan types or bundle with other banking services for additional package benefits.

NAB Tailored Home Loan

The NAB Tailored Home Loan is the standard home loan option that allows you to choose either a fixed or variable-rate loan. This is one of the loan types you can bundle with other banking features in the NAB choice package.

You can also decide to split your home loan between multiple loan types using the Tailored Home Loan, and you’ll only have to pay a single application fee.
You can make additional repayments on both fixed and variable-rate loans with this product, and repay up to $20,000 in additional funds, without incurring fees for customers with a fixed-rate loan.

Variable-rate loans allow for additional repayments, and members benefit from the 100% offset agreement.
The tailored home loan also allows you to withdraw funds over $500 as long as you have a variable-rate loan (fixed-rate loans transitioned into variable-rate inclusive).

You can make interest-only or principal and interest repayments on this loan, and NAB will allow you to borrow up to 95% of the home’s value.
The tailored home loan has a $600 application fee and an annual service fee of $250.

NAB Base Variable Rate

The base variable rate loan is a variable-rate only loan with comparatively lower rates than the previous option. There also aren’t any monthly service fees for the variable-rate option.

Additional repayment and fund withdrawal details are the same for the base variable rate product as those outlined in the tailored home loan, however there are no offset facilities available.

You can make interest-only repayments if you choose to, and borrow up to 95% of the home’s value.*

*Loans over 80% will require lenders mortgage insurance.

NAB FlexiPlus Mortgage Facility

The NAB FlexiPlus mortgage facility is a flexible line-of-credit loan that allows you to borrow from the equity you’ve earned in your home. You can make repayments as you see fit, as long as it’s enough to cover any interest you incur.

You can borrow up to 80% of the home’s value through the FlexiPlus mortgage facility, and if equity meets requirements, you can use these funds to make renovations on your home.

NAB Portfolio Facility

NAB designed their portfolio facility product to appeal to investors wanting to pay one annual fee to keep their loans and funds in one place.

This option offers a flexible, inclusive line of credit loan with discounted rates for loans over $1 million.

The portfolio facility and the portfolio package provide borrowers with a single lending limit for home and investment loans. You won’t have to reapply for a line of credit loan unless you exceed the allowed credit limit.

NAB Choice Package

The NAB choice package allows you to bundle your tailored home loan or FlexiPlus mortgage facility with a credit card, transactional account and insurance package to receive a discounted rate.

The amount you’ll save on interest depends on how much you borrow, but you’ll also save on credit card fees, application fees, and monthly service fees. The insurance you purchase with this package can also help protect your assets if the worst happens.

The first step in the NAB application process is conditional approval. You can complete this process online, and get an understanding of what loan you might qualify for.
Once you’re ready to formally apply, you can visit an NAB branch or book an appointment with one of their mobile loan officers. You will need the following information when you apply for a loan through NAB:

  • A form of identification
  • Proof of income
  • Assets and other properties
  • Debt information
  • Residential status

The loan officer will review your application and verify that information provided is correct, and if so the bank will approve your application and you’ll be able to settle your mortgage claim.

Redraw facilities are available for customers making extra repayments on their variable-rate loans. There is a $0 redraw fee, and you can access your funds through NAB’s online banking portal, provided the withdrawals are above $500.

Those with a fixed-rate loan cannot withdraw additional funds until the end of their fixed-rate period. Once the loan transitions into a variable-rate loan,customers can access any additional repayments they made.

Unlike a lot of other lenders, NAB allows you to make additional repayments on all of your loans – whether they’re fixed-rate or variable-rate.

NAB doesn’t cap additional repayments on variable-rate loans, but they’ll only allow you to repay up to $20,000 on a fixed-rate loan before incurring fees.

Keep in mind that withdrawal of repayments is unavailable during the fixed-rate period – you’ll have to wait until your loan switches to a variable-rate model before you can access them.

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