$10 per month service fee applies for home loans in a NAB 100% Offset arrangement.
$50 redraw fee applies.
Withdrawals at any time up to the approved limit.
A prepayment fee and economic costs may be payable if additional repayments are greater than $20,000 or full repayment is made during a fixed rate period.
An Early Exit Fee is payable when the whole of the loan amount is repaid in full within 4 years from the settlement date
Service fee only payable when limit utilisation for the month falls below 80% at any time during that month
LMI payable for LVR greater than 80% (for low doc home loans, LMI is payable when LVR is greater than 60%)
Available only via NAB Portfolio Package
Home Loan Glossary
Application fee
A fee paid by a borrower for setting up a loan.
100% offset
Helps reduce interest costs on a loan by linking the loan to a transaction or deposit account. The balance in the transaction account ‘offsets’ the loan principal. Interest is then calculated on the loan principal minus the balance in the account. For example, if the principal on the loan is $180,000 and there is $5000 in the transaction account, then interest is only calculated on $175,000.
Redraw
A loan feature that allows the withdrawal of funds from a loan, if the borrower has made additional repayments.
Line of credit
A fully functional transaction account that has a credit limit attached to it. The borrower can generally withdraw funds at any time, up to the credit (or facility) limit. (If the credit limit is attached to more than one account, the borrower may only be able to draw up to the account limit on each account.) There is usually no fixed repayment schedule; however, the borrower is usually required to make payments to at least cover the interest and fees on the loan.
Repayment holiday
If a borrower is ahead in their repayments, they can apply for a break in making loan repayments.
Additional Repayment
An extra repayment made to a loan, outside of the scheduled repayments.
Family Guarantee
A promise by a third party (eg. Family Member) to meet a borrower’s payment obligations if they are unable to pay.
Building conditions apply
Allows for a NAB home loan to be used when building a new house or renovating a house. The loan allows for the money to be progressively accessed (drawn down) as the building progresses. BICOE functionality is available on selected variable rate loans.
Maximum loan to property value
The total amount of the loan divided by the appraised value of the property. For example, if a property is valued at $300,000 and the loan amount is $240,000 then the LVR is 80%.
