NAB Introductory Rate Home Loan (12 months Fixed)
Posted May 21st, 2010
and last modified April 20th, 2012
What happens when I click Enquire Now?
- Clicking Enquire Now will take you to the lender's website
- After completing the contact form, a mortgage expert will contact you
- The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees
- After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan
Thinking of buying a new home? Ready to consider your options and weigh them against each other? One of the First and major things you need to determine is:
Do I want a Fixed Interest Rate on my Home Loan?
A Fixed interest rate has its high and low points. You should consider both the Pros and Cons of each product prior to selecting your choice.
Benefits:
- Once a Fixed rate Interest Loan is established, the rates cannot be increased
- If the loan is established during a low rate period, the interest rates will remain as low for the remainder of the agreement term
- Predictability. You will know exactly what your repayments are going to calculate to for the agreed term
Negatives:
- Interest rates for Fixed Home Loans are usually higher than that of a variable interest rate loan
- If you choose a”low-Down-payment” Loan, you may end up having to pay Mortgage Insurance, which can be a trap for some borrowers
- If the market declines, the borrower is still paying a higher interest rate
Alternatively, you may find that the Fixed Interest Rate works for you, and although you will realise the obvious possible downfalls of remaining with a fixed rate, you can stick with it if the rates are at a cost that you feel comfortable with.
Current NAB Fixed Interest Rates
Prior to deciding if the 12 Months Fixed Interest rate is right for you, you should research the current interest rates and compare the differences.
According to the above rates, a variable interest rate is a saving of 0.39%p.a. But say the rates increase by 0.67%p.a. – The fixed term is going to be saving you 0.28%p.a. It may be helpful to watch the reserve bank trends for the past 10 years and decide if you believe the fixed rate term is going to save you more.
It’s also important to consider the features of the Home Loan you are planning to apply for and consider if they are right for you.
Features of the NAB Introductory Rate Home Loan
The NAB Introductory rate Home Loan offers flexibility in that, you can choose to have the Loan fixed for the first 12 months and then switch to a variable rate. This is well suited to first home buyers who are new to the market and want to ‘test the water’. Other features include:
- Rate Lock – You can lock in the fixed interest rate that is quoted at the time of loan approval for up to 3 months, giving you added certainty that your repayments will remain as they were when you established the loan.
- Portability – If you buy another home, you could keep the same loan and secure it against your new home.
- Split loans – You can take out 2 different loans for the same property with just 1 application fee.
- Use it for Building – Available with variable rate loan only. Allows you to make progressive payments to builders.
- Flexible repayment options – You can repay your Home Loan Monthly, Fortnightly or weekly.
- Borrow a large amount – You can borrow up to 95% of your property Value, providing you with less time saving and own your dream home sooner
- Take a Break – Take a break from repayments if you’re ahead of scheduled repayments
- Redraw on your Loan – You can redraw a minimum of $2000 if you are currently ahead of scheduled repayments (during the variable period of the loan)
Read the NAB Introductory Rate Home Loan - 1 Year Fixed Rate terms and conditions.
| Minimum Loan Amount | $20,000 | |
|---|---|---|
| Maximum Loan Amount | $10,000,000 | |
| Maximum LVR | 95% | |
| Maximum Insured LVR | 95% | |
| Mortgage Offset Account | No | |
| Loan Redraw Facility | No | |
| Split Loan Facility | Yes | |
| Fixed Interest Option | No |
| Interest Rate Type | Fixed | |
|---|---|---|
| Interest Rate | 6.19% | |
| Repayment Type | Principle & Interest | |
| Repayment Frequency | Weekly | |
| Extra Repayments | Yes |
| Application Fee | $600 | |
|---|---|---|
| Legal Fee | $0 | |
| Valuation Fee | $0 | |
| Service Fee | $8.00 | |
| Settlement Fee | $0 | |
| Exit Fee | $150 |
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
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