Nab equity builder 2 discount. Used a P&I split (paid out and withdrawn) from a PPOR to buy shares (AFI, MLT, BKI, VGS etc etc) 2. Looks like moving forward their base rate will be ~3. When you consistently meet your monthly obligations, covering principal repayments and loan interest, the loan will be reduced to Understanding the NAB Equity Builder product Hey there, I'd love to get people's opinions on the pros and cons of the NAB EB product. e. 1% / (100% - 32%) = 9% loan. Reading about debt recycling it seems that LOC and this NAB EB are priced quite high - I'm seeing 3. 2. 50%, Comparison Rate 0. The current special rate is 4. The discount will apply for the life of the loan, or until varied or withdrawn by NAB. As far as I can see, if I put in 20K and borrow 80K for 5 years at 3. As per title. Would be keen to hear what other people are doing with this product!! I see the NAB EB loan as 50k of assets which should appreciate in the long term with minimal opportunity cost (excluding the monthly interest paid*) since I used my existing shares to service the required LVR. Has anyone had any luck speaking to someone in person at a NAB Branch about Equity Builder? I'm looking to open an account in my trust, but want some advice on what the borrowing capacity would be and the serviceability calculations i. The special rate is a 2% discount off the standard variable rate. Greater control NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. 75% then: I've lost 20K from my redraw so I pay my interest mortgage on that I end up paying $7,859 interest (which I can tax deduct) The interest paid is also tax deductible, so if your tax rate is 37. So it’s similar to a credit card, where if you have 20k limit and have 3k owning on the card - 20k is taking into account for mortgage calcs. After reading the PDS and other sources (u/Carpe-dividendum r/AusFinance u/StrongMoneyAustralia, etc) I'm aware of the risks and benefits, and I'm keen on taking a punt with it (10k). seems like alot of things can change the rate, as they can vary and will vary the rate. You can select your preferred (1) investments, (2) starting loan amount, (3) style of principal repayment, and (4) time frame to repay the loan. Seems like $350 for free? Greater control NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. Hmm, interesting. Is it right that if I have a split loan off my PPOR loan and use it in NAB Equity Builder to purchase whatever ETF of interest, I will be able to claim deductable tax on interest for the split loan "as well as" the interest on NAB Equity Builder? Do I need to transfer them across to NAB trade so that they get combined with the money I invest using NAB equity builder? Depending on how that goes, I will buy a few more 10k chunks as my salary goes up. Followed it up, and it looks like it's still 2-3 months away from being able to open an account. Broad gains for ASX; NAB rallies on profit beat; Netwealth, Superloop beat forecasts; ECB’s Lagarde to leave; Capstone guidance disappoints; private health insurers rally. Loans starting from $20k and a 2. First, if going the NAB Equity Builder route, the excess return after your interest cost won’t be huge (future post on NAB Equity Builder is planned). A ‘no margin call’ investment loan for managed investments like ETFs, LICs, SMAs and managed funds. My question for any NAB EB users, can I put extra $$ into my account and have this essentially 'offset' the NAB EB loan? For example, say I have a 50k loan with NAB EB over 15 years. Technically positively gear, I’ve received more dividends than interest paid, and have booming unrealised capital gains. 75%. Therefore, it won’t have a huge impact on your FI timeframe. NAB Equity Builder A new investment loan that could help you achieve your goals. This will likely be cheaper than the equity builder, and is a better option assuming you want to “borrow to invest” but is more risky than recycling (as you are increasing your debt level), as you’re increasing your debt level. So you’re definitely better off adding a loan to a mortgage if possible instead, but at these low rates the Equity Builder still makes sense to me. And those who has an existing EB, what’s your current LVR and opinion of the product? With the current… This is a great point that people forget - nab EB is a good product but they treat the facility like a credit card: if your facility is 50k, then that’s 50k debt no matter if you only owe 5k. 2% per annum. 8% for the EB on their site with the '2% life of loan' discount. For the sake of discussion NAB are transferring $150K of the AFI, MLT and VGS previously purchased to hold as security for a $200K equity builder facility. Do I need to transfer them across to NAB trade so that they get combined with the money I invest using NAB equity builder? Depending on how that goes, I will buy a few more 10k chunks as my salary goes up. Follow live. I am with UBank for mortgage and can redraw in a separate loan account at 2. Hi, I was thinking about using NAB's Equity Builder to borrow to invest in the stock market, and was curious if there were any competing products offered by any of the other banks, and any experiences anyone may have with this product Thanks ^The special rate for variable loans applies to new NAB Equity Builder facilities drawn from 1 May 2020. 1. Lenders generally look at it like a personal loan debt, so if you have 40k facility with nab eb (even if you haven’t used it) then that is 40k personal loan against your borrowing capacity. I've used all of my NAB EB fund allowance via a drip strategy over the last 6 months and am up about 6% in returns (incl dividends) with a VAS/VTS/VEU/VVLU strategy. Please read the sidebar and observe sub rules when posting. The special rate for variable loans applies to new NAB Equity Builder facilities from 1 September 2025. There’s been a lot of chat about the NAB Equity Builder lately so I thought I would share how mine is going… NAB Equity Builder - too good to be true? Discussion in ' Sharemarket Investing Platforms, Tools & Services ' started by BPhil, 27th Nov, 2017. For NAB Choice Package, NAB Private Package or Portfolio Package clients, this is the maximum discount available when applied in conjunction with any other offer. Whether you’re saving a deposit for your first home, paying for school fees for your children, travelling or retiring early, smart wealth-building strategies can help you achieve these goals sooner. I put my expression of interest to open a new account in about 2 months ago. My question is can't I both keep the investment and reduce the cost of servicing it by selling the funds which have increased in value THEN immediately repurchase the exact same funds at a lower leverage than before using the gains as a deposit (thereby decreasing the loan value and interest Financial institutions provide debt recycling services (such as the NAB equity builder program3) but some banks charge hefty fees for this service, and you will typically also have to pay a higher rate than a standard home loan. Download: NAB Equity Builder Approved Investment list Need the full list? Download a PDF of the approved investment list for NAB Equity Builder. Also that nab equity builder interest rate seems high. Is there a consensus as to which is a better choice? Just to add - the nab facility is added to your mortgage serviceability calculations, the whole facility not just what you currently have owing. I understand there are tax benefits for going the super route, but a NAB Equity loan can start building wealth right away. NAB's Equity Builder (EB) and debt recycling. a. They break down how it works, who it’s for, and whether it stacks up as an alternative to property investing. "nab equity builder" Refine results: Utility Management (24) Water & Wastewater Treatment (20) Membership (17) Operations (17) Stormwater & Watershed Management (15) Government & Regulatory Affairs (13) Biosolids Resource Recovery (8) Collection Systems and Conveyance (7) Industrial Water Resources (6) Public Health (5) Diversity Equity Since 1900, the Australian share market has returned an average of 13. I don't see the value, I know there is a cult like love for the NAB Equity Builder but unless you are on the top income bracket for claiming the tax deduction I don't see the value 6. Gearing of your investments can magnify the gains and losses in the value of your portfolio. With NAB Equity Builder (NABEB?) you pay off principal steadily, if loan term is 15 years (the max) and payments 15k pa, their calculator has you at a loan of 158k. Your monthly loan repayment is $1000 (meaning no extra savings for investments). 12 then, without limiting our rights under the mortgage terms in part 2 or under any guarantee, you will be required to take all steps we deem necessary to ensure that the secured liabilities are less than the facility limit. 13 If you do not comply with your obligations under clause 2. 21 votes, 25 comments. 5% above mortgage rates, with a 2% discount promo. 75% "Special" rate they can change when it suits them, which is just about what the long term average growth and dividends is (combined). 0% special discount. Managed investments include managed funds, exchange traded funds (ETFs), listed investment companies (LICs) and separately managed accounts (SMAs). Borrowing to invest is a strategy most of us are I put my expression of interest to open a new account in about 2 months ago. In this instance, better pay the loan off with the money, take out the nab equity builder and then you're in the same position for debt and shares as if you'd gone and just bought shares instead of paying off your home loan (except now the interest on that portion of the loan is tax deductible). whether it includes me as Trustee, or based on trust income. NAB Equity Builder works similarly to a home loan. . 17 votes, 24 comments. After the 15 years at 10% the portfolio is worth only 660k, albeit owned outright. If you can get a low enough interest rate, a Line of Credit mortgage can also be a good option for debt recycling. 3. You should discuss with your financial or tax adviser whether gearing your investment is appropriate for you. In today's deep dive, Glen chats with Philip McCall from nab to unpack the nab equity builder - a unique way to borrow for investing without margin calls. 34% , and you can prob do better elsewhere ! Listen to 810b deep dive: inside the nab Equity Builder from money money money. Any reason why they wouldn't allow a second card of the same type? Assume I could close one down within the first 12 months to avoid paying duplicate yearly fees. 3% p. Would be keen to hear what other people are doing with this product!! I understand the logic behind NAB Equity Builder. NAB Equity Builder requires principal and interest monthly repayments. 00% Repayment Type: Loan Purpose: Investment May 28, 2025 · NAB Equity Builder gives you increased exposure to the share market from day one with more than 950 investment options to choose from, and a choice of your loan term, with early payoff possible. As at 18 July 2025 The information contained in this document has been prepared without taking into account your personal objectives, financial situation or needs. I'm trying to work out why I wouldn't do this. So the assets you get to sit on are much less if at your servicing limit. When you consistently meet your monthly obligations, covering principal repayments and loan interest, the loan will be reduced to 21 votes, 25 comments. Are there any other products similar to NAB Equity Builder anyone could recommend? Hi all - thoughts on NAB's Equity Builder? I was thinking of getting a relatively small loan of 30k - 50k over 3 years which I will comfortably pay off. Are there any other products similar to NAB Equity Builder anyone could recommend? true Australian Personal Finance: budgeting, saving, getting out of debt, investing, and saving for retirement. Achieving financial and lifestyle goals tends to cost money. Stay informed with the latest ASX and international share trading news and insights. If the interest rate is 4% and your annual return is 7%, you’re really only pocketing 3%. There’s been a lot of chat about the NAB Equity Builder lately so I thought I would share how mine is going… NAB Equity Builder is a principal and interest investment loan that’s used to purchase financial assets, specifically managed investments. Jan 12, 2026 · Lending Rate Type: Discount Interest Rate: 7. I'm an existing NAB low fee VISA card holder and will easily spend $1,500 in 90 days. I've always relegated NAB EB to the useless pile, 8% interest are you kidding me! But anyone investing with cash who has a mortgage is effectively investing with a = 6. It looks like a really effective way of investing and building up wealth quickly without the risk of a margin call. The $200k facility is used to purchase $50K of AFI, $50k of MLT and $100K of VGS. Craig Saunders of NAB Equity Lending explains the features and potential benefits of NAB Equity Builder over margin loans Looking to build or renovate? Our construction loans, also known as building loans, can help you save on interest and give you more cashflow flexibility. Historical returns are based on the All Ordinaries Accumulation Understanding the NAB Equity Builder product Hey there, I'd love to get people's opinions on the pros and cons of the NAB EB product. I’d had equity builder for maybe 2-3 years now. You can select your preferred investments, starting loan amount, style of principal repayment, and time frame to repay the loan. You could do it in such a way that your NAB loan is paid off at the same rate as your super contributions, so it comes out of your pay all the same. 75% then: I've lost 20K from my redraw so I pay my interest mortgage on that I end up paying $7,859 interest (which I can tax deduct) Buy and sell shares online & enjoy competitive fees with nabtrade -NAB’s online share trading platform. Scenario 2: Take out a ten year loan of $100,000 from NAB Equity Builder, at the current special rate of 3. The discount will apply for the life of the loan or until varied or withdrawn by NAB. 5% and the Nab rate goes up to a whopping 8%, you’re still only paying 5%, lower than the long term real stock market average rate of return. The bank holds a mortgage over the investment until the loan is paid off. NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. sxmbc, j8xsps, tw3f, ty1jl, xiusn, afvnw, e4ddr, voj1, evabq, fdfa,