NAB cuts home loan interest rates for investors

author-avatar By on August 13, 2020
NAB cuts home loan interest rates for investors

Photo by Dylan Alcock on Unsplash

Today big four bank NAB cut two variable investment home loans for borrowers with a 20% deposit as a special offer.

The two home loans in question are for NAB's 'Base Variable Rate' offering, paying both principal and interest (P&I) and interest-only (IO).

  • Investment Base Variable Rate P&I 80%: 5 basis point cut to 3.09% p.a. (3.09% p.a. comparison rate*)
  • Investment Base Variable Rate IO 80%: 11 basis point cut to 3.29% p.a. (3.71% p.a. comparison rate*)

Borrowers must have an LVR of no more than 80%, meaning they must have a minimum deposit of 20%.

These special offer rates represent up to a 182 basis point discount off the standard rate, and are available to new borrowers only, including refinancing.

Note that as it's a 'special offer', the offer can be withdrawn at any time by NAB.

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.

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) investment home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

BankVic, Athena also cut

On Monday, BankVic cut fixed investor home loans by between 29 and 39 basis points, with terms from one to five years. Some key cuts were:

  • Investor Fixed 4 Years: 39 basis point cut to 2.95% p.a. (4.11% p.a. comparison rate*)
  • Investor Fixed 2 Years: 29 basis point cut to 2.85% p.a. (4.35% p.a. comparison rate*)

Meanwhile, at the same time as introducing a tiered interest rate system, Athena also cut interest rates on a few products. 

  • Celebrate Investor P&I 60%: 20 basis point cut to 2.79% p.a. (2.79% p.a. comparison rate*)
  • Celebrate Owner Occupier P&I 60%: 20 basis point cut to 2.39% p.a. (2.39% p.a. comparison rate*)

This rate is for borrowers with a 40% deposit or greater now i.e. refinancers, and is also part of the 'Athena Accelerates' tiered system effective 30 September.

A couple of interest-only products were also cut by 5 basis points.

You can see how Athena compares in the variable, owner-occupier (paying P&I) space in the table below.

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%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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