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

woman on a couch checking out some home loans

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.

Home loan comparisons on Mozo - last updated 25 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a.
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Variable Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    1.89% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Details
  • Basic Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    2.14% p.a.
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Details
  • Special Real Deal Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    2.22% p.a.
    2.26% p.a.

    No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly) . $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent.

    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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