NAB changes tailored home loans

National Australia Bank has announced changes to its NAB Tailored Home Loan offered through the broker channel, which are aimed at providing greater transparency for brokers.

NAB customers will also be able to access better rates with large deposits or more equity in their property.

Available from July 25, the refreshed tailored home loan introduces four new LVR pricing tiers for new standalone tailored home loans.

NAB executive of broker distribution for NAB and Advantedge Phil Waugh (pictured) said NAB was excited to be able to offer more competitive rates to customers with lower LVRs through its tailored home loan.

“These can be used for owner-occupier and investor lending as well as construction,” Waugh said.

“The tiered LVR offering through our tailored home loans builds on NAB’s commitment to bringing clarity, transparency and simplicity to home lending and makes it easier for brokers to support customers in achieving their homeownership dreams. The refreshed product focuses on lower fees for customers, which we know is important in the current market.”

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Four new LVR tiers will apply to any new standalone tailored home loan:







Tier 1

60% or less

Tier 2

60.01-70%

Tier 3

70.01-80%

Tier 4

80.01% or more

Waugh said the four LVR tiers would be associated with each fixed-rate term for fixed-rate home loans.

“For example, a one-year fixed rate home loan will now have four tiers, as will the second and third-year terms,” he said. “Other features of the tailored home loan include access to a 100% offset account on variable loans and fee-free redraw of $500 or more on variable loans.”

Waugh said in addition to the existing features of no annual fee and a simple monthly fee of $8 per loan, NAB had also permanently removed the application fee, saving its customers $600 when they applied for their loan.

“Brokers can work with their customers to calculate their LVR before submitting a request through NAB’s Instant Pricing Tool, with the tiered rates available in both aggregator software and on the NAB Broker website,” he said.

“Rates available for each type of loan will be more transparent and brokers will have the flexibility to choose between fixed and variable rate options, or to split their loan into portions.”

Read more: Aussies patient when it comes to homeownership – NAB survey

Waugh said NAB was the bank behind the broker.

“At NAB, we are committed to making it easier, simpler and faster to access our home loans products in this active, dynamic and resilient property market,” he said.

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