Commonwealth Bank and Westpac are two of the largest banks in Australia, with a wide array of home loans on offer. But which one offers more competitive home loans?
Commonwealth Bank (CBA) is Australia’s largest bank by basically any measurement, while Westpac (WBC) is Australia’s second-largest by many measurements. Both have more than $1 trillion in residents' assets on its books; they’re the only two banks in Australia to claim this feat, out of a cast of more than 100.
Westpac is Australia’s oldest bank, established as the Bank of New South Wales in 1817. CBA usurped Westpac’s reign as Australia’s largest bank when it became privatised in the 1990s. Now the two offer a wide array of home loan products, so which one should you go with?
Compare Westpac and Commonwealth Bank Home Loans
See how Westpac and CommBank compare with each other, and their major bank compatriots ANZ and NAB, in the table below.
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.
It’s tough to say in a black-and-white fashion which bank is better for a home loan because each borrower’s needs are different. Both tend to offer interest rates similar to one another that aren’t among the most competitive in-market.
In certain circumstances one may be better than the other, for example if you need a low-doc home loan Westpac doesn’t offer one, while CBA does in limited circumstances.
In the end it may also come down to home loan approval times; CBA claims as little as 60 minutes to put in an application to 4-7 business days for approval. Westpac did not respond to InfoChoice Group’s queries.
You might also prefer one’s app over the other, which is subjective, or you may already bank with one which could make it easier to get a home loan through them too.
The floor is yours.
Don’t forget the subsidiaries
Westpac and CommBank are such large banks they have either established other brands or acquired banks over the years, which enrich the financial landscape in Australia.
St. George, Bank of Melbourne, and BankSA: The three amigos of Westpac’s parenthood, these three banks tend to make home loan rate movements in tandem with one another.
Bankwest: Bankwest was acquired by CBA in the late-2000s, and the Perth-based bank offers a solid variety of home loan products.
Unloan: Unloan is a recent addition to CBA’s stable, offering a digital home loan experience with lower rates than many institutions. It’s a relatively streamlined affair, offering refinance-only home loans at 80% loan-to-value ratio (LVR).
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.
Use our home loan comparison tool to compare the latest product interest rates, fees and features. Still not sure? Speak to one of our home loan specialists.
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We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.
Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes.
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For home loans, the base criteria include a $500,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.
*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.
Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.
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.
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