NAB introduces 'lowest ever' variable investment home loan rates

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on May 28, 2021
NAB introduces 'lowest ever' variable investment home loan rates

NAB cut two of its variable investment home loans by 30 basis points this morning, making them the lowest variable investment rates the major bank has offered.

The two home loan rates cut by NAB were its base variable interest rates paying both principal & interest (P&I), and interest only (IO), with up to 80% LVR:

  • NAB P&I: Cut to 2.79% p.a. (2.79% p.a. comparison rate*)
  • NAB IO: Cut to 2.99% p.a. (2.99% p.a. comparison rate*)

These rates are for new loans only and are 'special offers', meaning they could be withdrawn at any time. 

Other recent major changes made by NAB include cutting various variable rates by up to 55 basis points in February and raising fixed interest rates by up to 25 basis points in May


Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2022. View disclaimer.


NAB executive of home ownership Andy Kerr said the rate cut is a reflection on the bounce back in investment lending recently.

“The health and financial shock of the pandemic drove a decline in investor interest last year. However, this year we have seen the return of investors as economic conditions have improved," he said.

“We also know price is just one factor when getting a home loan and continue to simplify and improve the home lending experience for all our customers."

The latest Australian Bureau of Statistics' lending indicators data shows investment lending drove overall growth, with investment loan approvals up 12.7% to $7.8 billion on the month.

This figure accounted for more than half the month's gains, and was the largest rise since July 2003.

Archistar chief economist Dr Andrew Wilson said increased investor activity was potentially at the expense of first home buyer activity.

"Sharply higher home prices are predictably facilitating changes in buyer activity with first home buyer levels, although still elevated, now declining as significant affordability barriers emerge for this group," he said.

"Conversely, investor activity continues to increase, although still at subdued market-share levels, driven essentially by the prospect of strong capital growth."

However, Dr Wilson also said overall owner occupier growth was still at "record-high levels", but also said recent government stimulus announcements will have minimal impact.

"Supply constraints from the recent surge in residential construction activity however are set to increase building costs and new house prices," he said.

"Activity levels however will decline though 2021 as affordability barriers act to subdue boom-time conditions with home price growth easing but still clearly positive."

BCU increases investment home loan rates

Another rate change this morning was made by BCU, which increased some fixed investment home loan rates by 10 basis points.

The details are:

  • Fixed IO 4 Years: Up to 2.59% p.a. (3.68% p.a. comparison rate*)
  • Fixed P&I 4 Years: Up to 2.49% p.a. (3.65% p.a. comparison rate*)

BCU also increased its four-year fixed loan for owner occupiers paying P&I by 10 basis points, now up to 2.29% p.a. (3.48% p.a. comparison rate*). 

BCU joins ING, CommBankNABWestpacCitiUBankBankwest, Newcastle Permanent, and Greater Bank, among several others, to increase home loan interest rates recently.


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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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