National Bank

Fixed rate, introductory rate, line of credit loans all of these options can get confusing. If you want to go back to basics with your home loan, a home loan like the NAB Base Variable Rate Home Loan could present a simple solution, but do your homework first to check that it's right for you.

The NAB Base Variable Rate Home Loan offers a discount of 0.5% per annum on NAB's standard variable rate, and a 0.7% per annum discount for mortgages over $250,000. Remember that this discount is only relative to NAB's standard rate, so even with the discount taken into account, you may be able to find a lower rate through a non-bank lender.

A discounted variable rate would appeal to many home buyers, but be sure to find out more about the features and flexibility offered by a loan before making a loan commitment based on the interest rate alone.

The NAB Base Variable Rate Home Loan allows home buyers to borrow up to 80% of the Loan to Valuation Rate (LVR), or 95% if they cover the additional cost of Lenders Mortgage Insurance. This means you could borrow more and therefore need to save less for a deposit, but the added cost of Lenders Mortgage Insurance could increase the total amount owed by a considerable amount.

The features offered by NAB include the ability to make extra repayments, a redraw facility, the ability to split your loan and the flexibility to make monthly, fortnightly or weekly payments. These features could be useful, but they come at a cost.

For example the NAB Base Variable Rate Home Loan allows borrowers to access a redraw facility, but there is a minimum redraw amount of $2000 at a cost of $50 per transaction.

Extra repayments can be made, but if the loan is paid in full within the first four years of the loan term, an Early Exit Fee of $900 applies. The NAB application fee of $600 is among the highest of those offered by other banks and non-bank lenders.

New homebuyers are usually busy enough thinking about paint samples, bathroom tiles and the cost of landscaping a feature garden without having to worry about interest rate rises as well. A fixed interest loan such as the National Australia Bank Tailored Home Loan Fixed Interest Rate loan can take away the need to follow interest rate fluctuations closely, but be sure that a fixed rate loan is the right financial solution for you before you make a commitment.

While the monthly repayments for variable rate loans varies according to the interest rates set by the Reserve Bank, a fixed interest rate will not change for the term of the fixed period. The NAB Fixed Interest Rate Loan allows borrowers to budget precisely for their repayments without needing to worry about interest rate rises.

The NAB Fixed Rate loan allows homebuyers to borrow up to 100% of the value of the property, with Lenders Mortgage Insurance required for any loan amount of over 80% of the value. The period of fixed interest can be between one and ten years.

A fixed rate loan such as the one offered by NAB will protect you from any interest rate rises allowing you to lock in the amount of your repayments, but it also means you won't benefit from lower repayments if interest rates happen to fall during the period of your fixed interest.

When looking for the right loan for you, remember to look at not only the interest rate, but the features offered by any particular loan and your need to access these features. For example, with the NAB Fixed Rate Loan prepayment in full within four years of your loan term will attract an Early Exit Fee, making it harder to get out of debt sooner.

The NAB Fixed Rate loan allows homebuyers to make additional payments up to maximum of $20,000 during fixed term. Any payments over this amount during the period of fixed interest will attract prepayment fees.

A redraw facility is available with the NAB Fixed Rate Loan, but a minimum amount of $2000 applies. The application fee of $600 is higher than similar loans offered by many other lenders, and an $8 per month account maintenance fee applies.

The country. It's famous for having friendly people, home-cooked meals, and fresh country air.

If you're considering buying a home in the country, you may have seen niche home loan products, such as the ones offered by National Bank. NAB are offering Rural Lifestyle Home Loans specifically tailored for borrowers wanting to buy a rural property.

Firstly, let's define what NAB mean by rural. According to NAB, a rural property is one that is further than 50km away from a provincial city (defined as having a population greater than 20,000) or more than 20km away from a primary regional town (which has a population greater than 10,000); the property must be larger than 10 hectares, and it cannot generate more than $20,000 income.

Low Doc home loans are often viewed as a quick and easy way of cutting through the paperwork associated with home loan applications. Applicants go through the normal home loan application process, with the difference being that all the documentation required to show proof of income is a signed declaration. It's called a 'Low Doc' process.

This type of loan can be advantageous for borrowers who are contractors, self employed or have a small business, i.e. borrowers with income and assets but don't always have the necessary paperwork to qualify for a standard home loan. National Australia Bank offer a number of Low Doc products. The NAB Tailored Home Loan with a variable rate includes a 100% offset option, redraw and additional repayments facility. The downside of this product is the minimum redraw amount of $2000. So depending on the way it gets used, the 100% offset option where the loan is linked to transaction accounts may not be such a great feature.

Another of NAB's Low Doc loans, the Tailored Home Loan Fixed Rate, offers the convenience of low paperwork, but at a cost. For example, additional repayments are limited to $20,000 during the period of fixed interest, and additional payments beyond this limit will attract penalties. Like its variable rate cousin, the redraw minimum for this loan is also $2000.

NAB offer their Low Doc loan products to self-employed borrowers who have a good credit history and a current ABN. These loans can be used for residential property and personal investments, but are not suitable for borrowers who want to build.