Interest rates & fees

Other lenders may offer new customers rates with significant discounts to what existing customers are paying in order to attract new business, with existing customers essentially getting ‘taxed’ for their loyalty! So, it pays to shop around.

At Nano, we believe in fairness, and our policy is to always offer the same low rate for new and existing customers. We don’t believe in penalising our customers with a loyalty tax. We encourage borrowers who have been caught by hidden fees, loyalty tax and bad service to refinance with an institution that believes in fairness and transparency.

Nano considers a range of factors in setting the interest rates of our products including the competitive market and funding costs such as the Reserve Bank of Australia’s (RBA) cash rate and BBSW (Bank Bill Swap Rate).

There are no Nano fees if you pay out your loan early. In fact, Nano’s home loan and offset sub-account is essentially designed to maximise the money you save and help you pay down your loan as quickly as possible!

A comparison rate is designed to represent a closer estimate of the true cost of a loan. It is expressed as an annual percentage rate and includes the loan’s interest rate as well as most upfront and ongoing fees and charges.

Lenders are legally required to show customers a comparison rate if they advertise a product’s interest rate, to help you identify the cost of the loan more accurately and make it easier to compare products.

A lot of lenders include attractive “headline” interest rates to lure customers, but then hide other fees and charges or roll-to-rates that you’ll pay, disguising the “true cost” of your loan. That is why comparison rates of other lenders are often much higher than their advertised interest rate.

At Nano, we believe in transparency, and charge zero fees, which is why our comparison rates for our principal and interest home loans are the exact same as our interest rates – what you see is what you get! And you’ll be happy to know that Nano has amongst the lowest comparison rates in the Australian market.

When you refinance to Nano, you will not be charged a Nano fee. No application, monthly or annual fees. No offset, valuation or settlement fees. No Nano discharge fee. Simply no Nano fees. $0. Simple, right?

That being said – there are other third-party Government refinance costs of around $260 – $440. These vary by state, but include title registration, discharge of mortgage, and title search fees. In some instances, Stamp Duty may also apply (usually only when transferring property into a new name). Be sure to check the relevant Government websites for the latest rates that apply to you.

Your current lender may also charge you an exit or discharge fee when refinancing. Be sure to check this via your contract and T&C’s or, if necessary, directly with your current lender, especially if you are on a fixed rate and break fees may apply. We want to ensure making the switch to Nano is going to put you in a better position (which we are confident it will).

Nano Visa debit card usage fees

Once you become a Nano customer (we can’t wait to welcome you) and start using your Nano Visa* debit card, Nano does not charge any fees for you to transact here or overseas. We also use Visa’s spot exchange rate for all overseas transactions – so you get the best available rate with no added margin or spread.

Also, Nano does not charge any fees on ATM withdrawals here or overseas. However, it’s worth noting that some ATM providers will charge third-party fees that are outside Nano’s control, so make sure you are comfortable with the cost of your withdrawal before you accept.

* The Nano Card is issued by Hay Limited ABN 34 629 037 403 (Australian Financial Services Licence 515459). See terms and conditions

You can find our current home loan interest rates here.

You can pay off your home loan faster by making additional or larger payments, depositing funds into your offset account, or by shopping around for a better deal. You’ll be happy to know that Nano has some of the most competitive home loan interest rates and one of the most flexible offset sub-account facilities in the Australian market – our home loan product is essentially designed to help you maximise the money you save and pay down your loan as quickly as possible, allowing you to get ahead faster.

At Nano, home loan interest is calculated daily, and posted monthly by multiplying the outstanding loan balance by the Annual Percentage Rate (APR) (converted into a daily percentage). Calculate how much interest you could save by refinancing to Nano.

Your Nano home loan requires you to make a contractual repayment every month. We do not currently require you to set up a direct debit to take this from another bank account. Instead, we give you flexibility and take the repayment from your Nano offset sub-account. So, as long as you have enough funds in your offset sub-account on your repayment date, your repayment will go through successfully.

There are a few ways to deposit funds into your offset sub-account;

  1. Make an instant payment in from another eligible account,
  2. Set up a recurring payment from another eligible account of your choice,
  3. Have your salary credited to your Nano Offset sub-account.

You can choose whichever option best suits you, just make sure there are sufficient funds in your offset sub-account on the date of your repayment. And remember, every dollar in your offset sub-account reduces the interest you pay. That’s the Nano way to pay.

Home loan repayments are calculated based on a range of factors including the loan amount, interest rate, loan term and repayment type. Use our Repayments calculator to see what your estimated repayments would be with Nano.

Interest only home loans allow you to only pay the interest on your loan, without contributing any money towards paying off the principal.

This is as opposed to principal and interest loans, where a portion of your repayments goes towards paying the interest, and a portion towards the principal component of your loan, reducing your loan limit over time. Most interest only loans have a maximum amount of time you can make interest only repayments (at Nano, between 1 – 5 years), before switching to principal and interest repayments.

There are a number of reasons why you might want to apply for an interest only loan including improving your cashflow and potential tax benefits. However, an important thing to consider before deciding whether to choose an interest only loan, is that although at first the repayments may look more affordable, you want to make sure you can afford the repayments once they switch to principal and interest after the interest only term has finished.

Still have questions?

Can’t find the answer you’re looking for? Please chat with our friendly team.