The National Australia Bank has deducted 10 basis points across the board for the variable interest rates of its new home loan contracts last Monday.

The NAB Tailored Home Loan for principal and interest payments now has a 5.25 per cent interest rate, while the interest rate for the NAB Tailored Home Loan for interest-only payments now sits at 5.35 per cent. Tailored Home Loans for residential investments have an interest rate of 5.40 per cent and 5.50 per cent for principal and interest payments and interest-only payments, respectively.

For those with the NAB Tailored Home Loan Choice Package who want to pay for both principal and interest of a home worth less than $250,000, the interest rate now sits at 4.65 per cent from 4.75 per cent. Homes valued between $250,000and $749,999 have an interest rate of 4.40 per cent, down from 4.50 per cent. Homes valued $750,000 and above have a reduced interest rate of 4.35 per cent, down from 4.40 per cent.

Interest rates were also reduced for NAB Tailored Home Loan Choice Package for interest-only payments. Homes valued less than $250,000 now have an interest rate of 4.75 per cent. Homes worth $250,000 to $749,999 gets an interest rate of 4.50 per cent, and homes worth $750,000 and above gets a 4.45 per cent interest rate.

NAB Tailored Home Loan Choice Package for residential investors who choose to bay both principal and interest have 4.80, 4.55, and 4.50 per cent interest rates respectively for the same price groups. Residential investors on interest-only payments get a 4.90, 4.65, and 4.60 per cent interest rate respectively across the same price groups.

The base variable home loan rate for principal and interest is at 4.10 per cent, while interest-only is at 4.63 per cent. For residential investments, the base variable home loan rate for principal and interest is at 4.25 per cent, while the rate is at 4.78 per cent for interest-only payments.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now