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NRMA Home Loans rates and fees

Explore NRMA Home Loans rates and see how our fees compare to the industry standard.

Understanding home loan rates and fees

When it comes to taking out a home loan, it can help to compare costs and fees to make sure you’re choosing a loan that suits your needs. You can use the tables below as a guide to help you weigh up your options and estimate the cost of your repayments.

NRMA Home Loan fees

In addition to your home loan repayments, lenders can also charge upfront, annual or ongoing fees, or discharge fees if you end the loan. It can be worthwhile to compare these to help ensure you’re getting the right loan for your circumstances. 

 NRMA Basic Home LoanNRMA Offset Home LoanIndustry Standard
Application fee$0$0Up to $600
Monthly service fee$0$15Up to $15
Annual fee$0$0Up to $395
Redraw fee$0

Online and manual redraw available with Basic Home Loan		$0

Online and manual redraw available with Offset Home Loan		Up to $50 per redraw
Valuation feeVariesVariesVaries
Establishment fee$150$150Varies
Settlement service fee$345.40$345.40Up to $650
Discharge administration fee$350$350Up to $700

Home loan calculators

Simple and easy to use, our home loan calculators can help you estimate repayments, how much you can borrow, and what you could save if you refinance. But remember, the results are just a guide to help get you started on your journey.

Borrowing calculator

How much can I borrow?

Find out how much you could borrow to get started on your online home loan journey.

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Refinance calculator

Looking to refinance a home loan?

Find out how much you could save by switching to an NRMA Home Loan.

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Repayments calculator

Want to calculate your potential mortgage repayments?

Find out your repayment options, rates and schedule on your loan amount.

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Rates and fees FAQs

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What is the difference between fixed and variable interest rates?

A fixed rate home loan means the interest rate is locked in for a certain period (usually 1–5 years). This means you will have more certainty of what your repayments will be when compared to a variable rate loan. At the end of this period, you can either commit to another fixed rate or revert to a variable interest rate.

A variable rate home loan means the interest rate will change depending on market conditions. When interest rates change your minimum required monthly repayment will increase or decrease, depending on the direction of the rate change. For that reason, a variable rate loan will mean less repayment certainty when compared with a fixed rate loan.

The repayments for a fixed rate loan are the same during the fixed period. But it also means you pay the same interest rate, even if market rates drop.

Fixed rate home loans also usually come with less features than variable rate loans, and you may not be able to pay the loan off early without penalty.

A fixed rate NRMA Home Loan can also come with an offset account. This lets you use your savings to lower the amount of interest you pay and reduce the overall cost of the loan.

What’s the difference between a principal and interest loan and an interest-only loan?

Principal and interest loans are the most common type of home loan. They involve making repayments which pay down some of the principal balance plus the interest accrued.

An interest-only loan involves making repayments for a set time (usually 1–5 years) to cover the interest being accrued and none of the principal. As a result, repayments on interest-only loans are lower than principal and interest repayments.

What’s the difference between an owner-occupied and investment home loan?

An owner-occupied home loan is for people buying a property to live in. Whether you're a first-time buyer or upsizing, this type of home loan is designed to help you settle in with confidence and flexibility.

An investment home loan is for purchasing property you plan to rent out or hold for capital growth. If you’re considering starting or expanding a property portfolio, an investment loan may support your long-term financial goals.

What is Loan-to-Value Ratio (LVR)?

Loan-to-value ratio represents the amount you’re borrowing against the bank’s value of the property used as security. A higher LVR represents a higher risk loan to a lender as there is less equity in the property the lender is using as security for the loan. 

The LVR is calculated by dividing the loan amount by the bank’s valuation of the security property, multiplied by 100. 

Here’s an example:
A couple want to purchase a property with a bank valuation of $800,000. They have a deposit saved of $80,000. They need to borrow $720,000.

  • Divide 720,000 by 800,000 to get 0.9
  • Multiply 0.9 by 100 to get a percentage
  • The LVR is 90%

Because the couple have an LVR greater than 80%, they may need to pay Lenders Mortgage Insurance (LMI).

With NRMA Home Loans the LMI premium is added to the loan amount. This means your loan repayments will be higher than they would have been if you didn’t have LMI.

What’s Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance (LMI) is a fee which will be added to your loan if you're borrowing more than 80% Loan-to-Value Ratio (LVR) of a property’s value (which means if you have less than a 20% deposit). This means the loan amount you need to borrow and your loan repayments will be higher than if you had at least a 20% deposit and did not need to incur Lenders Mortgage Insurance.

It protects the lender (for NRMA Home Loans, this is Bendigo and Adelaide Bank) from financial loss if you can’t afford to meet your repayments and default on the loan.

You’ll also need to pay LMI if the building is high density (5 or more storeys), or if there are 50 or more other residential properties in the same complex.

Factors that affect how much LMI will cost include:

  • The size of the loan (the higher your loan, the higher the cost of LMI)
  • Your deposit amount (the lower the deposit, the higher the cost of LMI)
  • The purpose of the loan (investors can pay as much as 20% more for LMI than home buyers)
  • The insurer used by your lender (premiums differ between insurers).

LMI can cost thousands of dollars, so if you want to avoid paying it, the best way is by saving at least a 20% deposit before applying for a home loan.

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Things you should know

Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL and Australian Credit Licence 237879) (“Bendigo Bank”) is the credit provider. Credit services are provided by Tiimely Pty Ltd (ABN 41 605 696 544 and Australian Credit Licence 496431) (“Tiimely”). Insurance Australia Limited trading as NRMA Insurance (ABN 11 000 016 722) (“IAL”) is a member of AFCA and does not hold an Australian Credit Licence. IAL may receive a commission from Bendigo and pay a commission to Tiimely if your loan application is approved.

NRMA Home Loans is brought to you by Insurance Australia Limited ABN 11 000 016 722, trading as NRMA Insurance, which is a separate and independent company from National Roads and Motorists' Association Limited ABN 77 000 010 506, trading as NRMA. NRMA provides Membership, the “My NRMA” app and other services.
 

  1. All lending interest rates are subject to change. Rates are for new lending and may differ for existing customers. Other fees and charges may be applicable and can be found on this page.

  2. Important information about comparison rates: The comparison rates displayed are calculated for a loan of $150,000 over 25 years. If a comparison rate relates to a loan with a fixed interest rate, the comparison rate has been calculated on the basis that our current applicable variable rate will apply at the end of the fixed rate period. If a comparison rate relates to an interest only loan with a fixed rate, the comparison rate has been calculated on the basis that the interest only period is the same duration as the fixed rate period. If a comparison rate relates to an interest only loan with a variable interest rate, the comparison rate has been calculated on the basis that the interest only period is 5 years. WARNING: The comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. Other fees and charges may be applicable and can be found on the Rates & Fees page. All interest rates are current and are subject to change without notice. 

  3. The LVR is inclusive of capitalised Lenders Mortgage Insurance (LMI). LVR is subject to LMI acceptability, location, and loan purpose.