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Liz H.
Liz H.
Caringbah, NSW

I have only had my home loan for a couple of months so don’t know much about what happens when interest rates move. My loan is with NAB and I read they are reducing rates by 0.25%, does that mean my repayments will be lower and should I keep making the same repayments I do now?

last year


Hi Liz,

depends on whether you are fixed or variable I suspect. If you used a mortgage broker, call them. Otherwise call the bank:)


Hi Liz,
Just to expand on the answer from Brendan.
Look at the paperwork you received when your loan was approved.
It will tell you if you have a fixed interest rate loan, or a variable interest rate loan.
If it is a fixed rate loan, then this rate reduction will not impact on you, and you have nothing to do.
If however, you have a variable interest rate loan, then you could reasonably expect that the bank will write to you and advise that they are lowering your interest rate by 0.25% from about the middle of June.
If that is the case, my recommendation would be that you maintain your current level of repayments as this means you will be repaying more of the loan principal each month and saving yourself more interest over the life of the loan.

Hi Liz,

Like the other comments repayments are determined by the interest rate unless you have fixed your loan for a period of time. The lender will adjust your repayments accordingly to ensure the loan is paid within your contracted period i.e. 30 years. If you are making extra then you will see these funds in your redraw account.
Example if you make repayments fortnightly it is like a bakers dozen of 13. The extra repayment will be in your redraw. The advantage is you pay of the loan sooner and it helps offset the interest.

Peter Pakarinen
Aussie Ramsgate - servicing St George and The Shire.

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