NAB drops interest rates on its Tailored Home Loan by up to 1.08%

By Jasmine Gearie · · 1 min read
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NAB is the first of the Big Four banks to drop interest rates on select home loans this year, with a cut of up to 1.08% now available on some of its variable home loans.

Owner occupiers who are paying principal and interest (P&I) or interest only (IO), with a loan-to-value ratio (LVR) between 70-80% now have access to rates that have fallen by as much as 0.78%.

For borrowers with 70% LVR, it means NAB’s Tailored Home Loan has a new variable interest rate starting at 6.79% p.a. (6.87% p.a. comparison rate*).

Select NAB investor home loans have benefited from a larger drop of 1.08%. This means variable rates for investors paying principal and interest or interest only with an LVR of less than 70% now have rates starting from 7.09% p.a. (7.17% p.a. comparison rate*).

Here’s a look at exactly what’s changed.

Product Old rate New rate Change
Owner occupier, P&I, <70% LVR 7.57% p.a.
6.79% p.a. -0.78%
Owner occupier, P&I, 70-80% LVR 7.77% p.a. 6.99% p.a. -0.78%
Owner occupier, IO, <70% LVR 8.04% p.a. 7.26% p.a. -0.78%
Owner occupier, IO 8.24% p.a. 7.46% p.a. -0.78%
Investor, P&I, <70% LVR 8.17% p.a. 7.09% p.a. -1.08%
Investor, P&I 8.37% p.a. 7.29% p.a. -1.08%
Investor, IO, <70% LVR 8.37% p.a. 7.29% p.a. -1.08%
Investor, IO 8.57% p.a. 7.49% p.a. -1.08%

While the rate drops are good news for new and existing NAB borrowers, it is still important to compare home loans before committing to any lender.

Right now the current average variable home loan rate in Mozo's database is 6.83% p.a., but a number of lenders offer rates well below this – see some deals below.