NAB Home Loan and Mortgage Lending Policy 2026

A NAB home loan depends on the applicant’s repayment capacity, deposit evidence and property, with separate tests for student debt and professional concessions. National Australia Bank (NAB) issues conditional pre-approval before final property checks, so a borrowing figure alone doesn’t clear the purchase.

For brokers, the useful distinction is between a rule that fits the file and an exception the lender has approved. Keep the policy wording, its effective date and the documents supporting each decision together. The lender policy guides cover other lenders’ assessment rules.

Home Loan Pre-Approval

NAB’s conditional approval certificate is valid for 90 days, as at October 2026. Its pre-approval guidance says final approval still depends on financial verification and an acceptable property valuation.

A calculator result estimates borrowing capacity from entered figures. An assessed pre-approval involves an application and lender decision, but the certificate’s conditions show which checks remain. Keep the certificate with the assessment correspondence.

Prepare income evidence, bank statements and savings records. Include expenses, existing debt statements and employment details, with identity documents for the application. NAB’s home-loan application guide explains the information it requests.

In a fictional file dated 3 October 2026, a couple has a conditional certificate for a $640,000 loan. They later choose an $800,000 house, which would mean an 80% loan-to-value ratio (LVR) if NAB values it at that price. LVR is the loan divided by the property value the lender accepts.

The certificate doesn’t approve that house. A lower valuation, new debt or changed employment can change the decision, even within 90 days. Reconcile those facts before relying on the certificate for the purchase.

The pre-approval process guide explains the wider stages between conditional approval and settlement.

Genuine Savings and Deposit History

Genuine savings are funds accumulated or retained by the applicant, with records showing their history. For NAB, assess the deposit under the specific lending route, then trace each amount to its source.

As at October 2026, NAB’s government schemes page specifies at least 5% genuine savings for eligible first home buyers. It specifies 2% for eligible single parents. These are scheme requirements, not a universal NAB deposit rule.

NAB’s deposit guide also identifies professional waivers and family guarantees as possible ways to avoid lenders mortgage insurance (LMI). LMI protects the lender when the borrower defaults. A waiver or guarantee changes that insurance position, while deposit evidence remains a separate assessment.

Build the deposit history before counting funds as genuine savings.

Money in the deposit	Evidence to retain	Decision the file needs
Savings accumulated from income	Statements showing regular deposits and the running balance	Which amount meets NAB’s history requirement for this route
Savings transferred between the client’s accounts	Statements from both accounts with matching transfer dates and amounts	Continuity of the original savings history
A family gift	Transfer evidence and the donor’s written explanation of whether repayment is required	Whether NAB accepts it as deposit funds or genuine savings
Sale proceeds or an inheritance	Settlement or estate records and the receiving statement	Classification under the applicable policy

For example, $30,000 transferred from the client’s older savings account isn’t newly earned money. Match it to the outgoing statement. A separate $20,000 parental gift needs its own classification, even when both amounts arrive in the same account.

For a gifted deposit or alternative history, request a written file-specific decision on the qualifying amount and required holding period. Attach the statements showing the actual dates. Keep that answer separate from proof that the money is available for settlement.

The genuine savings guide explains the broader distinction between deposit funds and savings history.

HECS and Professional Applicants

NAB’s student-debt concession and professional LMI waiver are separate tests, so an applicant can qualify for one without qualifying for the other. As at October 2026, NAB says student debt of $20,000 or less won’t affect borrowing capacity for eligible customers.

Its student-debt guidance requires Australian Taxation Office (ATO) evidence of the balance. Disclose the Higher Education Contribution Scheme (HECS) or Higher Education Loan Program (HELP) debt in the application. Retain the current ATO account record, with payslips showing any payroll deduction.

For debt above $20,000, include the debt and repayment information in the servicing assessment. Servicing tests whether income covers the proposed loan and other commitments. The $20,000 concession doesn’t establish a rule that all HELP repayments are ignored.

NAB’s professional waiver page requires medical applicants to practise in a listed field and hold current registration with the Australian Health Practitioner Regulation Agency (AHPRA). Listed fields include general practitioners, dental practitioners, pharmacists and physiotherapists.

Finance professionals must practise and hold current membership of an eligible professional institute. NAB lists accountants, actuaries and financial analysts. Legal professionals must practise and hold a current certificate with an accepted state body.

Keep occupation evidence and registration or membership records with the waiver request. The concession also depends on loan type and LVR. A professional title alone doesn’t approve the waiver or the loan.

In a fictional application, a practising physiotherapist has an $18,500 HELP balance and wants to borrow 90% of the property value. The ATO record supports the student-debt concession. AHPRA registration supports the occupation test, while NAB must separately approve the waiver at the proposed LVR.

If the waiver applies, the applicant avoids the LMI premium. If the student-debt concession applies, NAB’s borrowing-capacity calculation changes. Neither decision establishes sufficient income, an acceptable property or final approval.

Credit Rules, Security and LVR

NAB’s broker Credit policies section is the source for the residential rule applied to the file. Access it through NAB Broker, then record the document’s effective date and relevant clause. The NAB broker portal guide explains access and support routes.

As at October 2026, NAB’s Base Variable product page advertises borrowing up to 95% for owner-occupiers making principal and interest repayments. That ceiling applies to the stated purpose and repayment type. It doesn’t establish 95% eligibility for investors, interest-only loans or every security.

For each application, record whether the purpose is purchase, refinance or construction. Identify occupancy, the property type and address, with the accepted valuation. Calculate LVR using the proposed debt and document how any financed LMI is treated.

For a NAB refinance, retain the existing loan balance and payout information. Explain any additional borrowing separately. A product’s advertised maximum doesn’t approve a particular cash-out purpose or property.

Keep any approved exception with the file reference and exact condition waived. Record who approved it, when they approved it and the limits of that approval. A conversation about a possible exception is different from approval for the submitted facts.

Example Policy Escalation Note

Use a focused note when deposit classification or security treatment changes the decision. This fictional note concerns the physiotherapist’s file.

Field	File note
Facts supplied	Owner-occupied house purchase, proposed 90% LVR, practising physiotherapist, current AHPRA registration and $18,500 HELP balance
Deposit records	$30,000 transferred savings plus $20,000 parental gift, with source statements and gift declaration attached
Source and date	NAB public HELP and professional waiver pages read 3 October 2026; attach the applicable broker policy clause and its effective date
Rule requiring a decision	Whether this deposit history meets the selected lending route and whether the professional waiver applies at 90% LVR
Answer requested	Written confirmation of accepted funds, history period, waiver eligibility and any extra evidence or exception required

Bulma’s Policy Advisor can retrieve NAB’s policy wording for the deposit question. Keep that quoted wording in the file notes, then attach NAB’s written decision when the scenario needs an exception.

NAB Bridging Scenario Evidence

NAB documents bridging finance through its Flexiplus Mortgage Facility for buying a new home before selling an existing one. Its target market determination, starting 28 July 2023 and available as at October 2026, sets a maximum 12-month bridging period.

The document sets total credit at no more than 80% of the combined home values. It requires income to meet credit assessment and interest payments, with application and annual fees. The sale of the existing home forms the exit strategy.

The determination lists NAB’s own distribution channels for retail product distribution. A broker must establish the assessment route with NAB before proposing a lodgement pathway for this facility.

In this fictional reconciliation, the applicant buys for $850,000 while retaining a home valued at $650,000.

Item	Amount	Evidence or use
New purchase	$850,000	Signed purchase contract
Purchase costs	$45,000	Itemised duty and settlement estimate
Existing debt	$260,000	Current statement and payout estimate
Client contribution	-$100,000	Available funds with source evidence
Debt before interest and facility fees	$1,055,000	Purchase plus costs and existing debt, less contribution
Combined property value	$1,500,000	Values subject to NAB acceptance
Expected sale costs	$20,000	Itemised estimate
Net expected sale proceeds	$630,000	$650,000 sale less $20,000 costs
Debt after applying sale proceeds	$425,000	Before interest and facility fees

The opening debt is about 70.3% of combined value. Interest and facility fees still need room within the approved limit. Support the expected sale price and timing, then test a lower sale outcome against the proposed end loan.

If the sale brings only $600,000 with the same costs, end debt becomes $475,000 before interest and facility fees. NAB must assess repayment capacity for that exit. The arithmetic alone doesn’t approve bridging finance.

NAB Home Loan Review: Fit and Constraints

For an owner-occupier wanting a variable loan, NAB’s Base Variable suits a preference for lower ongoing fees, while Tailored adds offset accounts. This scenario review uses features available as at October 2026 and compares NAB products for a $640,000 loan on an $800,000 established house.

Borrower’s preference	Relevant NAB product feature	Constraint affecting the choice
Keep ongoing loan fees low	Base Variable lists $0 application and monthly fees	Redraw has conditions and isn’t an offset account
Keep cash accessible while reducing interest	Tailored variable allows up to 10 offset accounts	Its page lists a $12 monthly fee
Set repayments for a fixed period	Tailored fixed has terms from one to five years	Early exit and extra repayments can create costs
Split repayment certainty and flexibility	Tailored can split variable and fixed portions	Each portion follows its own features and conditions

For the offset choice, calculate the interest benefit from the balance the borrower expects to retain. Compare that saving with fees and the actual loan quote. The Tailored variable page describes its offset features and pricing basis.

NAB’s fixed-rate page allows extra repayments up to $20,000 during the fixed term without extra repayment fees. A borrower expecting a large lump sum must account for that limit and the fixed-loan terms.

NAB stopped selling its Choice Package on 18 August 2023. Existing customers retain benefits under the package terms, so a refinance review must distinguish an existing package from a new application.

For service, NAB’s 2 October 2026 broker service levels estimate one business day for purchase and refinance credit assessment. That measures the first credit decision, with complete documents. It doesn’t promise settlement within a day or measure customer satisfaction.

The verdict for this fictional borrower is to compare Base Variable with Tailored variable on expected cash balances and total loan costs. Student-debt treatment or a professional waiver can change eligibility in another file. Whole-bank ratings and a live rate ranking answer different questions.

Construction Loans and Progress Payments

NAB provides construction loans for building or renovating with registered builders, as at October 2026. Its building and renovating guide asks for a signed industry-standard fixed-price contract and plans, specifications and permits.

The guide requires builder insurance before the first progress payment. It also requires completion within 24 months of settlement unless NAB agrees otherwise. Settlement here is the first day NAB lends any part of the loan.

Borrower income and expenses still need assessment, along with assets and financial liabilities. Reconcile the contract price against the valuation, available funds and the client’s contribution. Send any request to change the contract or contribution to NAB for a written decision before relying on extra funding.

Under NAB’s construction payment guidance, each payment needs a signed progress claim certificate and relevant builder invoices or receipts. Funds draw down in stages, so interest increases as more money is advanced.

NAB requires inspections and valuations before construction, at the first progress claim and at the final claim. For final payment on a new home, provide the occupancy certificate. An interim certificate can apply where only specified external work remains outside the construction valuation.

For renovations and extensions, NAB requests the final inspection certificate. It can also request building insurance. Cost overruns need separate funding if NAB doesn’t approve additional lending.

Interest-Only Home Loans

NAB lists interest-only options for owner-occupiers and residential investors, as at October 2026, but approval depends on the application and loan terms. The product’s repayment label alone doesn’t establish an acceptable purpose, term or LVR.

Record the reason for interest-only repayments, the requested period and the loan’s total term. Match occupancy and security to the applicable credit rule. Keep the approved interest-only period and LVR in the offer and assessment record.

NAB’s repayment explanation says repayments typically revert to principal and interest when the period ends. The balance then needs repayment over the remaining term. A five-year interest-only period on a 30-year loan leaves 25 years to repay principal.

Assess that later commitment alongside the client’s income and other debts. Before recommending the interest-only structure, retain NAB’s approval for its purpose and period, with the repayment schedule showing what the client pays after reversion.