How to choose a home loan: A NAB and Citi loan comparison

By Maria Gil · · 2 min read
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It can be overwhelming looking at home loans. Tools like our home loan calculator or comparison hub can be very good starting points to give you key numbers, though there’s still more you can do. 

The overall repayment costs are important but when deciding between home loans you also need to consider extra features and potential fees. These can tip the scales for you.

As an example, we’ve compared two basic home loans with the same starting interest rate but with slightly different features and fees.

Home loanNAB Base Variable Home Loan Special OfferCiti Basic Variable Home Loan
Interest rateFrom  2.29% (2.33% comparison rate*) for 80% LVRFrom 2.29% (2.34% comparison rate*) for 80% LVR
Maximum loan amountNo maximum$4,000,000
Upfront feesUpfront fee of $0Upfront fee of $649
Extra repaymentsFreeFree
Redraw facilitiesFree with a $500 minimumFree
Repayment frequencyWeekly, fortnightly or monthlyWeekly, fortnightly or monthly
Offset accountNoNo
Maximum LVRUp to 95% LVRUp to 90% LVR
Discharge fees$350$350

Let’s look at a basic example.

Mariano and Dolores are looking to buy a three bedroom home in the suburbs. The house they want is selling for about $1,000,000 and they only have a 10% deposit of $100,000 saved up, which means they have to borrow $900,000.

With the NAB Base Variable Home Loan Special Offer, the couple won't get the 2.29% (2.33% comparison rate*) rate because they don’t have a 20% deposit. Instead, with a 10% deposit their interest rate would be 2.99% p.a (2.99% p.a. comparison rate*).

Here are the estimated numbers for the 90% LVR rate:

  • Monthly repayment: $3,790
  • Total interest payable : $464,250
  • Total paid in 30 years: $1,364,250

Alternatively, with the Citi Basic Variable Home Loan, the interest Mariano and Dolores would get with a 10% deposit starts at 2.54% p.a. (2.59% p.a. comparison rate*) rather than the 2.29% (2.34% comparison rate*) rate.

Here are the estimated numbers for the 90% LVR rate:

  • Monthly repayment: $3,575
  • Total interest payable: $386,940
  • Total upfront fees paid: $694
  • Total paid in 30 years: $1,287,634

Which home loan works better here?

Even with upfront fees the Citi Basic Variable Home Loan is actually $76,616 cheaper! This is assuming Mariano and Dolores receive the lowest possible rate for their 90% LVR for the examples given. We are also not taking into account that variable rates fluctuate during the life of the loan, so take note of that.

If you are interested in comparing more home loans, look at some of the best home loans in Australia. If you’re looking for more low rate variable home loans, check out the chart below.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 24 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • 2-Year Discounted - Simple Home Loan Variable

    • Owner-Occupied
    • Principal and Interest
    • LVR<60%
    Interest rate
    5.54 % p.a.
    Variable for 24 months and then 5.99% p.a.
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,988
    Go to site

    Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,991
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Simple Home Loan Variable

    • Owner-Occupied
    • Principal and Interest
    • LVR<60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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