NAB Home Loan Review

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Expert Rating - (4/5)
NAB, one of the big four banking groups in Australia, was founded in 1834 and currently listed on the ASX. They are funded by retail deposits and wholesale capital markets. They have been a popular choice for home buyers and investors, with their attractive cash rebates and relatively good rates among the big four. However, ongoing service is arguably the most worrying area for their overall performance in home loan space. In the Hayne Royal Commission, NAB’s reputation was arguably affected the most due to their customer service.

Reservoir Finance’s senior mortgage brokers surveyed our customers and combined it with our experience in working with them to bring you this comprehensive review of NAB Home Loans.
nab home loan review

Reservoir Finance Score Breakdown

How does NAB fair? Let’s break it down. Our Reservoir Finance rating assesses a lender on five key criteria:

NAB has an average interest rate in the market. They offer strong incentives for new customers and those with a large loan size. In general, they do not price well for their existing customers, which is not uncommon among big banks. Historically, NAB is leading in the field of cash rebates to attract new clients. In terms of fees, NAB has standard fees and charges comparative to other majors.
NAB has a relatively loose borrowing capacity assessment compared to most banks. They are among only a few lenders who really implement a new rule of determining assessment rate which is the higher of actual rate plus 2.5% buffer and floor rate (5.5% as of April 2020). Also, NAB has a relatively better calculation for borrowers’ existing loans. Combining all factors, all other things being equal, NAB will allow you to borrow more.
NAB’s credit policy is not bad in terms of their acceptance of nearly all types of employment (new job is not an issue overall), extended choices of valuation types (full valuation is not needed in most cases), consideration of a variety of securities (though there are LVR caps in certain suburbs), and nice deal for eligible Doctor, Dentist, Optometrist, and Veterinarian. However, as a big drawback, NAB is never a lender for quick turnaround or loan application times. With their extensive focus and promotion on acquiring new clients, they have sacrificed on getting things done for customers in a timely manner.
NAB has a wide range of products and product features fitting all kinds of eligible clients. They also have large physical branch networks across the country, but in terms of home loan services, efficiency is not always a merit you can expect from NAB.
NAB is good at attracting new clients and retaining about-to-leave clients, but certainly more efforts need to be devoted in satisfying ongoing customer services.

Is NAB a good bank? Our final score...

Final Score - 4 out of 5
An overall rating of 4 stars was given to NAB by a group of our senior mortgage brokers. The overall experience for our clients who have mortgages with NAB has been mixed and we (as mortgage brokers) are also a bit divided on how good NAB is. It is for sure NAB has many good products with good incentives to offer, there are concerns regarding their efficiency and ongoing customer support. Overall, we believe NAB is a lender providing extensive home loan products and incentives to customers and performing above average in the market.

What we like

What we don't

NAB, one of the four largest banking groups in Australia, has over 1,500 branches and over 4,400 ATMs across the country. NAB has a wide range of products in home loan spaces. They are good at attracting new clients and their retention team tends to be aggressive to do price matches, but overall customer experience with NAB is reported as average.
NAB offers a wide range of home loan products for both owner occupiers and investors. They have standard products including basic home loans and packaged home loans. Fees are considered standard among big banks.
Currently owner-occupied home loan rates start from lower than 3%. NAB’s home loan rates are mainly determined by loan amount. To get an up-to-date rate quote from NAB, or want to negotiate with NAB for existing home loan rates, please contact our dedicated mortgage brokers of Reservoir Finance – we may be able to get you custom interest rates.

In terms of fees, here is a summary for most relevant fees (as of April 2020).
NAB’s facilities are comprehensive with different offers to cater for different borrowers. We have summarised the home loan product features in the table below.

*Minimum per redraw amount is $500. **Extra repayment during the fixed period is limited to $20,000 cumulatively.
NAB suits those who have a clean credit history and desire for branch services (though limited). For borrowers who may have a tight borrowing capacity but desire for a big four lender, NAB in general is the first choice.
Max LVR is 95% inclusive of LMI for Owner Occupied security. For investors, max LVR is 90% inclusive of capitalised LMI for Principal and Interest repayment, and 80% for Interest Only repayment.. If you are a Doctor, Dentist, Optometrist or veterinarian, you can lend up to 90% LVR with no LMI!
Speak with us today on how you can access this!
We are able to provide a detailed borrowing capacity calculation for you specifically with NAB. But we may need you to help us understand your financial situation better.

Please fill in the following two calculators on our website, print the calculators as pdf, save and send them to [email protected] – we will get back to you within 1 calendar day.

Calculator 1: How Much Can I Borrow? (No worries if the calculator gives you a result lower than your expectation. We can always help.)

Calculator 2: Budget Planner. (It’s always important for us to understand your incomes but also expenses. Be patient as it’s not a short form.)

In general, we find that NAB has looser requirements and will allow you to borrow more comparatively to other major banks and lenders. A roughly 5% more borrowing capacity is achievable than other majors with all circumstances being the same.
NAB’s customer service is arguably the most worrying area in the whole home loan lending space. In order to prevent unexpected results, keep an eye on your transactions, and be updated with your mortgage broker. We have seen instances where fees may be charged wrongly, customer instructions may be handled incorrectly, or services may be responded in an untimely manner. In case you are mistreated by the lender in whatever way, please feel free to contact us at [email protected] for free consultation.
NAB home loans can be applied via their branches and lenders; however, a majority of NAB home loans are settled through mortgage brokers. As mortgage brokers, we compare, you choose. Contact us to get our dedicated mortgage broker’s help. As experienced senior mortgage brokers, we are well equipped in our knowledge and confident to provide premium services to our clients.
With extensive promotions on fixed rate products and not competitive variable rate products, NAB’s most popular home loan product for the months would be Fixed Rate Tailored Home Loan with Choice Package, 2 years fixed with Principal and Interest Repayment. Current rate is 2.29%. Please be noted there is no perfect product for all as personal circumstances and financial situations vary. (updated Apr 2020)

Interested in applying for a NAB Home Loan?

Contact Reservoir Finance today and let us help determine if a NAB Home Loan is best for your personal circumstances. Their products are suited to a particular type of customer so they might not be the best for your personal situation. It’s best to chat with us to see if it is suitable for you or if there are other better loan products on the market.

We may also be able to help negotiate custom rates for you!

The Reservoir Finance team aims to help Australians fulfill their dreams of home ownership, achieving financial freedom and protecting their hard earned money. We are a values based group of finance brokers and always seek to put your needs first as your success is in our best interest. Contact us below or find out more about us here.

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