Commonwealth Bank, Westpac, NAB and ANZ
  • The major banks have a large and full suite of home loan products and add-ons, including redraw and offset facilities, packaged home loans, fixed rates (up to 10 years in some cases), and variable rates, with the ability to split the home loan too.
  • However just because they’re the biggest, does that make them the best? See a snapshot of the major banks' home loan offerings below, and decide for yourself in this article.

Big four bank home loans compared - CBA, Westpac, NAB, and ANZ

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.44% p.a.
6.66% p.a.
$3,141
Principal & Interest
Variable
$0
$0
97%
6.59% p.a.
6.59% p.a.
$3,190
Principal & Interest
Variable
$0
$160
70%
6.79% p.a.
6.87% p.a.
$3,256
Principal & Interest
Variable
$8
$350
70%
6.79% p.a.
7.16% p.a.
$3,256
Principal & Interest
Variable
$0
$0
90%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Who are the big four banks?

MajorBanks.jpg

According to data from APRA, Australia is dominated by four big banks, and they make up around three quarters of the value of the Australian home loan market. In terms of ranking the major banks based on home lending for both owner occupiers and investors, CBA is the largest:

  1. Commonwealth Bank - $542.206 billion

  2. Westpac - $444.134 billion

  3. NAB - $307.507 billion

  4. ANZ - $276.122 billion

Data current to April 2023.

These big banks are so large they each have home loan portfolios at least twice as large as the fifth-largest bank, Macquarie. CBA and Westpac each alone are larger than all the banks that rank 5-10 (Macquarie, Bank of Queensland, Bendigo & Adelaide Bank, ING, Suncorp, and HSBC).

CBA - Commonwealth Bank

  • Founded in 1911 by the Federal Government.

  • Was Australia’s central bank before the RBA was established in 1959-60, and was wholly government-owned until it was fully privatised between 1991 and 1996.

  • Also owns Unloan and Bankwest, and has a 45% stake in online broker group Lendi, which came about after CBA merged Aussie Home Loans in 2020.

  • Participates in the First Home Guarantee 2-5% Deposit Scheme.

WBC - Westpac

  • Established in 1817 as the Bank of New South Wales, making it Australia’s oldest bank.

  • Became ‘Westpac’ in 1982 after a series of mergers and acquisitions.

  • Also owns St George, Bank of Melbourne, BankSA, and RAMS.

NAB - National Australia Bank

  • Has roots back to 1834.

  • Become NAB as we know it in 1981 after the merger of National Bank of Australasia (founded 1858) and the Commercial Banking Company of Sydney (founded 1834).

  • Also owns digital bank UBank, which also absorbed neobank 86 400 in mid-2022. In 2022, NAB also acquired Citi’s retail banking portfolio.

  • Participates in the First Home Guarantee 2-5% Deposit Scheme.

ANZ - Australia & New Zealand Banking Corporation

  • Was founded in London as the Bank of Australasia in 1835.

  • Became ANZ as we know it in 1970 when the ANZ Bank and ES&A Bank merged, Australia’s largest at the time.

  • Is unique among the major banks in that it offers home loans fixed for 7 and 10 years.

Big four banks: Fixed vs variable-rate home loans

Not sure whether to opt for a variable-rate or locking your home loan with a fixed rate from the major banks? See how a handful compare below.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.44% p.a.
6.66% p.a.
$3,141
Principal & Interest
Variable
$0
$0
97%
6.59% p.a.
6.59% p.a.
$3,190
Principal & Interest
Variable
$0
$160
70%
6.79% p.a.
6.87% p.a.
$3,256
Principal & Interest
Variable
$8
$350
70%
6.79% p.a.
7.16% p.a.
$3,256
Principal & Interest
Variable
$0
$0
90%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Advantages of major bank home loans

  • Convenience: Chances are you already have a bank account with them, and as an existing customer it could be more convenient just to go with what you’ve always known.

  • Branches/physical presence: The big banks have the largest footprint in Australia and in many cases you can still pop into a branch and speak to someone to get sorted, as opposed to other banks which are online-only or through a call centre.

  • Package products: Many big banks offer discounts on other financial products if you bundle them all together, such as insurances, credit cards, other loans and more.

  • Good apps: The major banks have dedicated a lot of time to their apps, and while this is subjective, they are generally pretty swish and are intuitive to move money around or make changes to your home loan.

  • Stability: It’s pretty unlikely these banks will ever collapse or merge with some other mystery bank, with your home loan left in limbo, and they are banned from merging with each other.

Disadvantages of major bank home loans

  • Not the most competitive: They need to pay for their huge footprint and staff somehow, and that likely results in a not-so-competitive product. There are more than 100 banks in Australia and many more lenders, so you’re not limited to four banks.

  • Hard to unwind if you have other products: If you’ve got a packaged home loan with an insurance policy, credit card or other product, it could be harder to refinance the home loan to a better deal. The banks know this, which is why they offer them.

  • May not have the fastest approval times: Major banks have a lot of customers and a lot of applications in any given day, so it can be very easy for approval times to blow out. Smaller digital-focused lenders can approve home loans in a matter of hours, not days or weeks.

  • Might be harder if your situation is unique: If you’re self-employed or low doc, or have a rural property, other banks may be more suited to providing finance for your home loan needs.

  • Closing branches at a faster rate: The major banks have drawn criticism because they are closing branches, particularly in regional areas. Research from KPMG shows customer-owned banks have roughly four branches per billion in assets, versus 0.9 for the major banks.

  • Don’t offer SMSF loans: The major banks pulled out of home loans for self-managed super funds in the 2010s. Instead, a variety of other lenders compete in this space.

Compare CBA, Westpac, NAB, and ANZ with other lenders

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance. 90% LVR
  • Fast turnaround times. Can meet 30-day settlement
  • No monthly or ongoing fees, split with low-rate variable loan
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning