It was so big no other major movements were seen since.
NAB recently unveiled the new rates on its variable Tailored Home Loan, which comes with an offset account and split loan option, available for both owner-occupiers and investors.
The bank slashed 78 basis points across its Tailored Variable products paying principal and interest (P&I) and interest-only IO, with a loan-to-value ratio starting at less than 60% and maxing out at 90%.
Borrowers with at least 30% deposit can grab NAB’s lowest rate of 6.79% p.a. (6.87% p.a. comparison rate*).
Here are the new rates of NAB’s Tailored variable mortgage for owner-occupiers.
|
Product |
Change |
New rate |
Comparison rate |
|
Tailored Variable P&I, ≤60% |
-78 bps |
6.79% p.a. |
6.87% p.a.* |
|
Tailored Variable P&I, 60-70% |
-78 bps |
6.79% p.a. |
6.87% p.a.* |
|
Tailored Variable P&I, 70-80% |
-78 bps |
6.99% p.a. |
7.07% p.a.* |
|
Tailored Variable P&I, 80-90% |
-78 bps |
6.99% p.a. |
7.07% p.a.* |
|
Tailored Variable IO, ≤60% |
-78 bps |
7.26% p.a. |
7.07% p.a.* |
|
Tailored Variable IO, 60-70% |
-78 bps |
7.26% p.a. |
7.07% p.a.* |
|
Tailored Variable IO, 70-80% |
-78 bps |
7.46% p.a. |
7.27% p.a.* |
|
Tailored Variable IO, 80-90% |
-78 bps |
7.46% p.a. |
7.27% p.a.* |
The bold move might appeal more to new customers who can access these newly slashed rates.
However, existing customers who might feel that they’ve missed out on this offer can rest easy, as NAB’s latest adjustments simply reflect a changing tack at the bank around which home loans are priced and advertised.
The bank has lowered its advertised rates to bring them into line with the actual rates customers end up paying.
NAB is the second of the Big Four to abandon the marketing strategy of inflating rates to give borrowers generous “discounts”, which could potentially give the sense of winning the lottery of deals.
Commonwealth Bank of Australia (CBA) was the first to revamp its home loan pricing strategy in November 2022.
Meanwhile, investors taking out NAB’s Tailored variable home loans can access these newly adjusted rates.
|
Product |
Change |
New rate |
Comparison rate |
|
Investment Tailored Variable P&I, ≤60% |
-108 bps |
7.09% p.a. |
7.17% p.a.* |
|
Investment Tailored Variable P&I, 60-70% |
-108 bps |
7.09% p.a. |
7.17% p.a.* |
|
Investment Tailored Variable P&I, 70-80% |
-108 bps |
7.29% p.a. |
7.37% p.a.* |
|
Investment Tailored Variable P&I, 80-90% |
-108 bps |
7.29% p.a. |
7.37% p.a.* |
|
Investment Tailored Variable IO, ≤60% |
-108 bps |
7.29% p.a. |
7.26% p.a.* |
|
Investment Tailored Variable IO, 60-70% |
-108 bps |
7.29% p.a. |
7.26% p.a.* |
|
Investment Tailored Variable IO, 70-80% |
-108 bps |
7.49% p.a. |
7.46% p.a.* |
|
Investment Tailored Variable IO, 80-90% |
-108 bps |
7.49% p.a. |
7.46% p.a.* |
NAB adjusts other home loan products
The bank also slashed 78 basis points off its Defence Force Home Loan, exclusively available to members of the Australian Defence Force (ADF).
Eligible borrowers can access a variable interest rate of 6.79% p.a. (6.87% p.a. comparison rate*) along with the offset account, redraw facilities, and other features that come with the Defence loan.
Another mover this week
Homestar Finance was the only lender to join NAB in moving mortgage rates this week.
The non-bank lender dropped as much as 26 basis points on its range of variable rate Star home loan products for owner-occupiers and investors.
- Star Classic P&I, 80%: down 26 bps to 6.09% p.a. (6.09% p.a. comparison rate*)
- Star Choice P&I, 80-85%: down 16 bps to 6.59% p.a. (6.26% p.a. comparison rate*)
- Star Essentials P&I, 80%: down 26 bps to 5.99% p.a. (5.99% p.a. comparison rate*)
- Investment Star Classic P&I, 80%: down 16 bps to 6.39% p.a. (6.42% p.a. comparison rate*)
- Investment Star Classic IO, 80%: down to 16 bps to 6.79% p.a. (6.82% p.a. comparison rate*)
The lender’s variable home loans come with free online redraws, multiple loan splits, and flexible repayment options. Others also come with a debit card and a linked offset account.
In the same breath, Homestar Finance upped the rate on its Star Gold Home Loan (70%) by 1 basis point to 5.99% p.a. (5.99% p.a. comparison rate*).
Photo by Igor Passchier on Pexels
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