NAB rate cut: Big bank takes lead on investor home loans
As competition in the home loan market continues to heat up, NAB has cranked things up a notch. The bank’s move this week to slash variable rates for investors has made its offer the best among the big four.
The interest rate for the NAB Base Variable Rate Home Loan now sits at 3.09% (3.09% comparison rate*) for investors with a loan-to-value ratio (LVR) of 80% or less and making principal and interest repayments.
For context, LVR refers to the percentage of property value you’re borrowing from the bank. So if you’ve saved up a 20% deposit, then your LVR would be 80%.
NAB’s five-basis point cut places it just ahead of ANZ’s rate of 3.12% (3.16% comparison rate*), available on its Simplicity PLUS home loan for investors with a maximum LVR of 80%.
NAB’s latest rate reduction also further widens its gap with Westpac and Commonwealth Bank:
- The Westpac Flexi First Option Investment Loan has a rate of 3.19% (3.20% comparison rate*) for investors with a 70-90% LVR. However if your LVR is 70%, you can snag a rate of 3.09% (3.10% comparison rate*), which is as low as NAB’s.
- Meanwhile, the CommBank Extra Home Loan has a rate of 3.27% (3.28% comparison rate*) for investors with a maximum LVR of 80%. That’s a 18 basis point difference with NAB.
How does NAB compare to market leading rates?
Right now, NAB’s offer is 73 basis points less than the average variable investor rate in the Mozo database which sits at 3.82%.
However, if you’re after the sharpest rates in the market, then the big bank may not be your best bet. The top variable investor rate according to Mozo is 2.59% (2.63% comparison rate*) through Easy Street.
Besides Easy Street, there are also plenty of other smaller banks with more competitive rates than NAB. In fact, 27 lenders in the Mozo database currently offer variable investor rates below 3.00%.
Property investment: Is now a good time to buy?
It’s true rent prices across Australia have been dropping over the past several months due to lower rental demand amid COVID-19, and that may have dampened the mood of some investors. It also demands that a prospective investor do their homework and get some sound financial advice first.
But it’s not all bad news. For one, there are many more opportunities on the table for keen investors to snatch up a stellar rate.
Case in point: as of August 2020, the average variable rate for investors making principal and interest repayments is 3.82%. Go back exactly three years and you would have been looking at an average as high as 4.90%.*
Interested in taking advantage of some of the lowest investor rates we’ve seen in years? Scroll down below for a snapshot of what’s on offer, or jump over to our investment property loans comparison table for even more options.
-
Promoted
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
- Investment
- LVR <80%
Go to site- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- interest rate
-
6.29% p.a. (6.20% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site -
Promoted
Optimum Fixed Rate Home Loan
- Investment
- Principal & Interest
- LVR <80%
Go to site- Interest rate
-
5.89
%
p.a.
Fixed 1 year
- Comparison rate
-
6.66
%
p.a.
- Initial monthly repayment
-
$2,962
Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply
- interest rate
-
1 year - 5.89% p.a. (6.79% p.a.*)
2 years - 5.69% p.a. (6.66% p.a.*)
3 years - 5.69% p.a. (6.55% p.a.*)
- Fixed loan revert rate
-
6.90% p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
-
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
-
- maximum borrowing amount
-
$2,500,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to $20,000 p.a. during fixed rate term
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$1.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Legal and exit fee at cost. Valuation fee charged at cost, starting from $132.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about SWSbank home loans
Go to site -
Promoted
Fixed Home Loan
- LVR<90%
- Investment
- Principal & Interest
Go to site- Interest rate
-
5.84
%
p.a.
Fixed 3 years
- Comparison rate
-
6.68
%
p.a.
- Initial monthly repayment
-
$2,947
Enjoy the investor benefits of a fixed loan term for 3 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.29% p.a. (6.91% p.a.*)
3 years - 5.84% p.a. (6.68% p.a.*)
5 years - 5.99% p.a. (6.59% p.a.*)
- Fixed loan revert rate
-
6.91% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site
-
Optimum Fixed Rate Home Loan
- Investment
- Principal & Interest
- LVR <80%
Go to site- Interest rate
-
5.89
%
p.a.
Fixed 1 year
- Comparison rate
-
6.66
%
p.a.
- Initial monthly repayment
-
$2,962
Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply
- interest rate
-
1 year - 5.89% p.a. (6.79% p.a.*)
2 years - 5.69% p.a. (6.66% p.a.*)
3 years - 5.69% p.a. (6.55% p.a.*)
- Fixed loan revert rate
-
6.90% p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
-
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
-
- maximum borrowing amount
-
$2,500,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to $20,000 p.a. during fixed rate term
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$1.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Legal and exit fee at cost. Valuation fee charged at cost, starting from $132.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about SWSbank home loans
Go to site -
Fixed Home Loan
- LVR<90%
- Investment
- Principal & Interest
Go to site- Interest rate
-
5.84
%
p.a.
Fixed 3 years
- Comparison rate
-
6.68
%
p.a.
- Initial monthly repayment
-
$2,947
Enjoy the investor benefits of a fixed loan term for 3 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.29% p.a. (6.91% p.a.*)
3 years - 5.84% p.a. (6.68% p.a.*)
5 years - 5.99% p.a. (6.59% p.a.*)
- Fixed loan revert rate
-
6.91% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
- Investment
- LVR <80%
Go to site- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- interest rate
-
6.29% p.a. (6.20% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site -
SMSF Home Loan
- LVR <70%
Go to site- Interest rate
-
6.99
%
p.a.
Variable
- Comparison rate
-
7.01
%
p.a.
- Initial monthly repayment
-
$3,323
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
- interest rate
-
6.99% p.a. (7.01% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
$490 legal fee for purchase only. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term. Available for Self Managed Super Fund purposes only.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
Go to site -
SMSF Home Loan
- LVR <80%
Go to site- Interest rate
-
7.49
%
p.a.
Variable
- Comparison rate
-
7.51
%
p.a.
- Initial monthly repayment
-
$3,493
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.
- interest rate
-
7.49% p.a. (7.51% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$1,500,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Investor
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
$490 legal fee for purchase only. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term. Available for Self Managed Super Fund purposes only.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
Go to site
Your selected home loans
*Data drawn from home loan statistics page, as of 13 August 2020.
* 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.
^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.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.