This was posted 8 years 2 months 21 days ago, and might be an out-dated deal.

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NAB Home Loan with 250,000 Bonus Velocity points

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NAB Home Loan with 250,000 Bonus Velocity points
Go to Deal
Lrubig on 30/01/2016 - 00:55 nab.com.au (473 clicks)
Last edited 30/01/2016 - 09:15 by 1 other user

The previous deal was marked as expired but it is still current.

ING just raised their home loan rate by 18 basis points. I am pissed and I am shopping around.

If you fly domestic, these points are worth $5000.

If you fly overseas, these points are not worth as much, but they are still enough to fly you to beijing for 2 return trips ( from Melbourne).

To be eligible:
- apply home loan by end of March
- settle home loan by end of June
- apply a Nab velocity reward card with $95 annual fee
- have a free transaction account linked with your loan
- make one salary credit to the transaction account

Of course I would just get the points and cancel the credit card.

Financial Home Loan

Related Stores

National Australia Bank Group (NAB)
National Australia Bank Group (NAB)

closed Comments

  • PlagueistheCheap on 30/01/2016 - 00:58

    Banks normally give a credit card for free with home loans. I get platinum with CBA.

    • rubig on 30/01/2016 - 01:00
      +2

      Yes but in a package they charge you service fee.

      Nab has the same Choice package with any premium card annual fee $395.

      If you apply for nab base variable and apply for velocity card the total annual service fee for whole package is $95.

      • PlagueistheCheap on 30/01/2016 - 01:03

        I guess it depends on the size of the loan and risk assessed to the deal you get. Some get better than others.

        • rubig on 30/01/2016 - 01:07

          Hi mate,

          Are you using cba wealth package? That comes with $395 annual fee. Did you successfully get that waived?

          I am mortgage shopping and I am checking CBA too.

        • PlagueistheCheap on 30/01/2016 - 01:10

          @rubig:
          I will have to double check with my wife as she knows the finer details but I am sure there is no fee. We were getting a free gold card however when we added a second mortgage we got upgraded to platinum and another .75% discount.

        • rubig on 30/01/2016 - 01:13

          @Expon:
          Wow nice! Let me know!

        • lancedefrance on 30/01/2016 - 07:49
          +2

          @rubig:
          I can confirm with CBA, was unable to waive the $395 fee for the wealth package. The credit card comes free with the package if you cancel the package then you will need to pay for the credit card or down grade to a cheaper no frills card.

        • rubig on 30/01/2016 - 09:13

          @lancedefrance:

          Thanks for the info.

        • fredblogs on 01/02/2016 - 14:55

          @Expon: Did you manage to find out if the $395 was waived? I'm also interested in this.

    • SBOB on 30/01/2016 - 07:02
      +2

      Banks give out free credit cards all the time.. No need to necessarily choose the loan based on some arbitrary 'freebie'

    • derpdeder on 30/01/2016 - 10:16

      Call them and get them to give you the diamond card. Better earn rate on it and they do it free on the wealth package too.

  • superbird on 30/01/2016 - 00:58
    +2

    I'm pretty sure nab has higher interest rates than ing?

    • rubig on 30/01/2016 - 01:01

      Nope. ing is now 4.38% for the basic loan.

      The tip here is:
      Nab rate is negotiable, but ING generally not.

      • syba on 30/01/2016 - 01:21

        Banks are less willing to negotiate unless the loan is over the $1m mark. At least that's what it used to be, but may be different now….

      • mmd on 30/01/2016 - 01:29
        +3

        Or get in touch with one of the ozbargainers here who are mortgage brokers. They are here to help you find the best mortgage.
        Shannon Ingram is a top bloke. Although I chose to go with another bank myself, he was very resourceful and answered alot of questions I had.
        You can pm him from this bargain How ironic it is a ING deal. lol
        The other user who on here you can pm is tomleonhart

        • Appleboat on 30/01/2016 - 09:08

          @ShannonIngram: Nice work on the disclosures. Integrity is great to see. I will be coming to you if I ever take the plunge with a loan.

        • tomleonhart on 30/01/2016 - 16:02

          Thanks for the mention :) It is greatly appreciated !!

        • fredblogs on 01/02/2016 - 15:06

          @ShannonIngram: Looks like you're in Sydney. Do you recommend any Melbourne brokers?

      • BluBoy on 30/01/2016 - 01:42
        +1

        ING just went up to 4.17% for me… Not sure what product you're on, but there is potential you could negotiate with them to get a better rate without the hassle (and at least $1k in fees) of switching

        • rubig on 30/01/2016 - 09:09

          Thanks called ING, they drop rate to 4.23%

          Still $50 more monthly vs 3.99 rate.

          The problem is Ubank's service and app are so bad, I don't feel my money is safe with them.

    • [Deactivated] on 30/01/2016 - 08:55

      They just make you suffer with almost impossibly poor customer service & I would say disinter3ested staff whom border on incompetent.

    • yanman on 30/01/2016 - 15:10

      They do. I'm with NAB now and about to leave. Going to save at least 1%

      • Spending2Much on 30/01/2016 - 17:11

        What's your current rate ?
        I'm on a fixed term 4.59 % with NAB

        • yanman on 30/01/2016 - 17:12
          +1

          The standard 5% variable for choice package < $250k

        • Spending2Much on 30/01/2016 - 17:24

          @yanman:
          Going to ING?

        • yanman on 30/01/2016 - 20:41
          +1

          @albanyson: Nope - going to talk to broker first and also give nAB a chance to do better, but there's a lot of options here: http://www.canstar.com.au/home-loans/

        • rubig on 31/01/2016 - 00:08
          +1

          @yanman:
          I don't fully trust canstar. I suspect there is paid top spot in ranking. I will do my own research.

  • jv on 30/01/2016 - 01:25
    +4

    these points are worth $5000.

    How can I sell them to get my $5000 ?

    • rubig on 30/01/2016 - 09:06

      Yeah I know jv won't take this deal.

      Legally:
      If you really want to sell you can buy $910 grocery vard and sell them on ebay for about $850.

      Not so legally:
      There is black market on gumtree to sell points but it won't give you $5000.

      • jv on 30/01/2016 - 09:28
        +3

        So if you get less, it's not really 'worth ' $5000 then, is it?

        • naritas on 30/01/2016 - 11:27

          Hi JV, you're actually spot on. Our company holds an Australian credit licence and is accredited with NAB and NAB's official position on this is $1500 or 250,000 points. The rate is also 4.32% p.a. (comparison rate of 4.49% p.a.). As the OP mentioned, there may be room for discounts for exceptional borrowers, but the reality is that there are comparable lenders who are offering standard pricing at 30-40 basis points less per annum.

  • cryptos on 30/01/2016 - 01:36

    $250,000 or more…

  • [Deactivated] on 30/01/2016 - 02:43
    +5

    When you can lock in at 1% for 10 years in Japan our rates will always look terrible no matter where you shop.

    • rubig on 30/01/2016 - 09:10
      +2

      How to land a loan from japan?

      • Appleboat on 30/01/2016 - 09:12

        How we can't arbitrage this or that someone else doesn't try I have no idea? AFSL required and all those are ripping us off?

    • ShannonIngram on 30/01/2016 - 09:14
      +1

      I'll just leave this here http://www.telegraph.co.uk/finance/personalfinance/borrowing…

      • clintclint on 30/01/2016 - 10:32
        +1

        could've gone the other way and they are saving money on interest and making money on the fx ….

    • delfredo on 30/01/2016 - 10:10

      Lock in forward FX rate too. You'll be laughing!

  • Gavman on 30/01/2016 - 08:13

    This is an old deal. Been around for Yonkers and probably posted on ozbargains already

    • rubig on 30/01/2016 - 09:03
      +1

      Well as I mentioned the previous post has expired but this deal is still current. Please read my post.

      • Gavman on 30/01/2016 - 09:30

        Ok. Not sure what's expired though it's the same deal that's been around for ages.

  • Senatekill on 30/01/2016 - 08:24
    +2

    Bank of Melbourne has a $1500 cash back, rates are around 4.3% - there is a cheaper rate out there, so i'd rather go for that loan and keep the savings with the cheaper rate.

    • [Deactivated] on 30/01/2016 - 08:58

      And their customer service (you can actually call the branch or branch manager to get help) is infinitely better.

      • rubig on 30/01/2016 - 09:13

        Thanks. My boss is with Westpac as well. He did mention service is better.

        But westpac not long ago raised interest rate by 25 basis point when RBA put rate on hold. Not a trustworthy lender.

        Funny among all the lenders few of them give lower rate and stay low.

        • mickeyjuiceman on 30/01/2016 - 23:28

          "Not a trustworthy lender." LOL

        • rubig on 31/01/2016 - 00:15

          @Mic Cullen:
          I.e. Can't trust them not to do sneaky interest rise without RBA rate change.

        • mickeyjuiceman on 31/01/2016 - 07:21

          @rubig: How was it "sneaky"? How much investigation did you have to do to find out it had happened?

          The idea that banks can only change the IR when the Reserve does is just weird.

        • rubig on 31/01/2016 - 10:21

          @Mic Cullen:
          If bank doesn't consider RBA's rate change at all, why do we need to have RBA?

          Bank can do whatever is the key issue frequently causing economic crisis.

        • mickeyjuiceman on 31/01/2016 - 12:28
          +1

          @rubig:

          Good thing I didn't say anything even approaching "(the) bank doesn't consider (the) RBA's rate change at all," isn't it? The RBA does a LOT more than just set home loan rates by proxy.

  • [Deactivated] on 30/01/2016 - 09:12

    "Basis points"

    • rubig on 30/01/2016 - 09:16
      +1

      Thanks corrected.

  • akupaku on 30/01/2016 - 09:48

    i just moved to NAB instead of points i took $1500 cash and the rate is 4.32% without any monthly/yearly fees. they gave me a credit card because of the points deal but i will cancel that after i get the cash in my account and i didn't pay any fees for transfer except $260 or something govt fees…hope that helps someone

    • unity1 on 30/01/2016 - 09:51

      Does it also come with a mortgage offset account?

    • Spending2Much on 30/01/2016 - 17:17

      Is that owner occupier? Variable rate?
      My NAB choice package is 4.59% and costs $395 p/a

      • rubig on 31/01/2016 - 00:03

        Your rate is very high. I suggest you call them and threaten to leave them then ask to speak to client rentention team for a lower rate. Mention Ing offers many benefits in their orange advatage loan with 4.23%.

        Even 4.23% is still too high. Eg for $480K loan 18 year term 4.23% loan cost $50 more every month vs 3.99% loan. In the life of loan that is $10,800. If your term is 30 years you will pay much more than 10,800 dollars.

        Ubank has a nice calculator for repayment. Check it out.

  • naritas on 30/01/2016 - 09:57

    Hi Rubig,

    If you're shopping around and you're looking for a better deal than ING, we think you may find this one appealing: https://www.naritas.com.au/latest-news/summer-refinance-spec…

    In short, it's far cheaper than both NAB and ING and comes with up to $2000 cashback. The lender is Newcastle Permanent Building Society. They are one of the most awarded lenders in Australia and are a 110 year old building society (ADI) who offer the Australian Government Guarantee on deposit funds (if you were concerned about the safety of any monies in offset).

    Hope this helps.

    • rubig on 30/01/2016 - 14:08

      Thanks let me check this out.

    • Free Fall on 30/01/2016 - 16:59

      Guarantee is only up to $250,000 per person per institution.

      • naritas on 30/01/2016 - 18:45
        +1

        True, the guarantee is up to $250,000 per person per institution, however:
        a) The guaranteed sum refers to the funds sitting in offset, not loan size. As such, it should be fairly adequate to cover the majority of people with offset accounts.
        b) NPBS is the largest building society in Australia and has over $9 billion in assets. So it's a legitimate competitor to the major banks in this (the home lending) sector.

        • fredblogs on 01/02/2016 - 15:47

          So if you plan to have more than 250k in offset, do you recommend only the major banks?

        • naritas on 01/02/2016 - 19:26

          @fredblogs: Excellent question. Given the number of factors that come into play there is genuinely not a one size fits all approach that could be applied to deliver a neat 'yes' or 'no' answer. As general rule, there is no such thing as a free lunch in the finance industry. This largely translates to rate for risk vis a vis you want the most secure financial institution for your offset funds, chances are the product it is attached is not the most cost competitive. The trick for most people is to find that balance between security and risk.

          If you wanted to have a chat about your specific circumstances please feel free to send us a PM.

          Hope this helps.

    • rubig on 10/02/2016 - 00:08

      Just reporting back that I am going with 3.99% UBank.

  • akupaku on 30/01/2016 - 09:57

    nope but u can put extra money and withdraw it anytime u want…

    • unity1 on 30/01/2016 - 10:07

      Yeah, thought so. I was looking at this deal before the CBA came back with what I was after

  • Helmutson on 30/01/2016 - 10:05
    +1

    I'm in the fortunate position through savings and efficient spending (thanks to everyone at Ozbargain for that) to very shortly be able to fully pay out my home loan.
    I've already mapped out my post-debt free debit/credit card strategy (Again, thanks to Ozbargain):

    Citibank Plus Debit Card - Free Overseas ATM withdrawals
    28 Degrees Degrees or Bankwest Card - International Purchases
    ING Savings Maximiser - Earn 3.5% interest
    ING Orange Debit Card - Earn 2% cashback on purchases
    ANZ Rewards Platinum Amex/Visa - Best Rewards earner available in terms of points multiplier. Already an ANZ customer so need to try and get them to
    (a)waive the yealy fee
    (b)give me some bonus rewards points

    In true Ozbargain style though, I would love to make the most of my home loan before it is gone and was wondering if this type of deal would be a good swansong?
    Current home loan balance is $260k so I would meet the minimum loan criteria, however, wondering if all the fees involved with this type of switch would surpass the value of the 250,000 Velocity points? Anyone have any other "Ozbargain strategies" they could suggest?

    • naritas on 30/01/2016 - 12:16
      +3

      Hi Helmutson, the question of the net financial benefit of switching in light of costs is a great avenue of approach. The answer will depend on how you weight the following factors:
      1. How long you are likely to stay in this offer? At 30/40 basis points more per annum than alternatives you are probably paying a premium of $750p.a. on your loan balance for this product. So if you intend upon sitting in the product for 3+ years you're going to erode most, if not all, benefit from switching.
      2. Would you prefer cash or points? If you prefer cash, the offer is worth $1500 according to NAB (as they will let you take $1500 cash instead of points). If you want points and know how to use them the points may be worth more than $1500.
      3. Refinance costs typically include exit fees of ~$300-$500 and establishment costs ~$250-$300 paid to your state OSR and ~$200 paid to NAB (can be less for very large loans on negotiation). In a commonplace worst case scenario, the cost of commencing with a new product in light of these costs is $1000 in aggregate.

      Hope this helps.

      • Helmutson on 31/01/2016 - 20:54

        Thanks Naritas,

        I will soon (2 weeks time) have enough in my current offset account to fully pay out my home loan, so the only reason to switch would be to get maximum value cashback/points from the new bank and then pay out the new mortgage at the earliest convenient time possible. In the long term I would prefer to keep my current ANZ Platinum Amex/Visa Rewards account as from my research and experience it seems to have the best rewards return/total spend ratio. If it works out best to cancel this as well and then reapply at a later date for bonus points/fee waiving etc then I will do so.
        I'm happy to engage the services of a mortgage broker if it will be of advantage to everybody. Please let me know if you are interested in such a venture.

        • naritas on 01/02/2016 - 09:13

          Hi Helmutson, Thank you for taking the time to reply. We'll send you a PM to arrange a time to chat privately with an eye to investigating whether we can meet your needs.

      • fredblogs on 10/02/2016 - 09:48

        Hi naritas, if someone plans to keep >250k in an offset account, do you have a different set of recommendations?

        • naritas on 10/02/2016 - 11:03
          +2

          @fredblogs thanks for the question.

          People with more than $250K in offset typically have needs and circumstances that are even more unique than the average borrower..and most (including the credit advice legislators) would argue that blanket recommendations are bad even for fairly common scenarios.

          So with that warning out of the way, a couple of starting points would be:
          a) Evaluate the effect of rate on the net debt vis a vis interest rate is not that much of a factor on a loan with a net balance (i.e. loan minus offset funds) of $20,000, for example. That large volume of offset funds will often increase the relative value of rebates, bonuses (such as points) and fees. However, we've commonly encountered people who have large amounts of money sitting in offset and large loans, so there is no single rule on this front.
          b) Many would argue that the quality of institution holding the offset monies is relatively more important when it is not covered by the Australian government guarantee on funds. As such, in addition to proper professional advice on the topic, you may be well served by doing your own research into the organisation behind the loan product and who is issuing the offset account (NB: they're not always the same!). This doesn't mean that you automatically should turn to a major bank, however, the relative importance of how robust the product issuer is will probably increase in line with the volume of your offset funds.

          Hope this helps.

    • rubig on 30/01/2016 - 14:06
      +1

      I found I Have exactly the same combination of accounts as you do.

      Yes ING is great in transaction and savings account, but they are getting more expensive.

      I would still take the points as they can be redeemed into 250,000 x 0.007 = $1750 worth of grocery cards.

      Also they will be worth much more if you need to fly overseas every one or 2 years.

      But like what above post says, you need to check whether refinancing is worth it. The establish fee and the discharge fee do cost money.

      • Helmutson on 30/01/2016 - 17:04

        Thanks mate,
        I've asked ANZ for an estimate of the payout cost. I'm assuming their discharge rate is $160 as I've read from their website, not sure if they have other fees too. I'd then be asking NAB for their National Choice Package ($395) which should negate any establishment fees etc and apply forn the Velocity Rewards card. I think their discharge fee is $150 and I'm sure they have hidden fees they don't disclose until you've applied.

        so I calculate:

        $160 ANZ payout
        $395 NAB Choice Package
        $150 NAB payout

        Total Expenses = $705

        Assuming $1750 points value - $705 = $1045 profit

        Might be worth the effort, me thinks.

        • rubig on 30/01/2016 - 23:54
          +1

          Hi mate,

          If I went with NAB I wouldn't take the choice package. Its fee is $395 annually.

          I would take the base variable loan with no fee and free everyday transaction account. Then I will get non-premium velocity reward credit card with $95 annual fee waived for the first year.

          Then I get points or money and then before it even charges me 2nd year annual fee, I will cancel the velocity card. Remember there are plenty of no annual fee credit card, and Nab CC is only to get he points.

  • delfredo on 30/01/2016 - 22:11

    Has anyone tried loans.com.au? Their offset loan is 4.14% variable. Never gets mentioned by brokers because they don't get commission from this lender.

    • rubig on 30/01/2016 - 23:58

      I would like to see answers too. Could you ask in forum?

  • cocomelon on 09/02/2016 - 16:51

    refinancing 500k loan, splitting the loan with the following rates and cashback.
    fixed rate (4.09%), variable (4.32%)
    $1500 cashback, $10 monthly fee.
    once approved will apply the velocity credit card just to get 250k velocity points.

    • fredblogs on 09/02/2016 - 17:23

      Did you do this just to get the points?

      • cocomelon on 09/02/2016 - 17:26

        no lower rates. with CBA the rates are 4.99% fixed and 4.45% variable. plus $395/annual fee
        apparently wont be able to get the velocity points too. bummer!

        • fredblogs on 09/02/2016 - 17:33

          I was quoted CBA 4.25% variable but that includes a 1.35% discount. Is yours home loan or investment?

        • cocomelon on 09/02/2016 - 18:19

          @fredblogs: owner occupied. Banks always offer better rates for new customer. i was with them for nearly 3 years. are you getting the cashback too? may i know what is your fixed rate?

        • fredblogs on 09/02/2016 - 19:24

          @ishe: Yes, cashback. I'm not doing fixed, are you doing that to reduce your risk? When does the bank start charging higher interest because you're no longer a new customer?

        • rubig on 10/02/2016 - 00:10

          @fredblogs:
          Just look at the credit card bonus deals for new customers. You will see banks absolutely loves new customers and don't give a shit about existing ones ;(

        • fredblogs on 10/02/2016 - 09:47

          @rubig: So just switch home loans every year, assuming they give cashback?

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