Big 4 Bank Home Loan Rates

The Big 4 Banks are Australia’s largest lenders and include ANZ, Commbank, NAB and Westpac. Compare some of their best variable and fixed home loan rates for owner occupiers and investors.

While there are many home loan lenders in Australia, ANZ, CommBank, NAB and Westpac dominate most of the consumer finance market. According to APRA’s statistics, the big 4 banks collectively hold 73% of the nation’s home loans.

The sheer size of their customer base means that they have a considerable amount of influence in the market. The big 4 banks are often expanding by acquiring smaller banks, but they are prevented from merging together by the ‘six pillars’ policy, as it was initially called. Established in 1990 by Treasurer Paul Keating the policy opposes any merger between the four largest banks and two largest insurance companies. The growth of the big 4 banks through the ‘four pillars’ policy is subject to regulatory approval to ensure that the market remains competitive so that borrowers can find the best home loan rates possible.

Here’s a more in-depth look at each of the big 4 banks:

CommBank (Commonwealth Bank Australia)

The Commonwealth Bank of Australia was founded in 1911 by the Federal Government under the Commonwealth Bank Act and served as Australia’s central bank before the Reserve Bank of Australia was established. It was privatised during the 1990s and now serves 15.9 million customers across its branches.

It has the largest home loan book among all of Australia’s banks (APRA), with CommBank’s home loans offering a wide range of owner occupier and investment products. It also provides home loans through its subsidiaries Unloan and Bankwest.

Westpac (Westpac Banking Corporation)

Westpac was founded in 1817 as the Bank of New South Wales making it the oldest bank and company in Australia. It later merged with the Commercial Bank of Australia and was renamed to Westpac Banking Corporation in 1982. Through its portfolio of brands, Westpac serves over 12.7 million customers.

As the second largest home loan lender in Australia, Westpac’s home loans offer competitive rates and useful features. Westpac also has home loan products through its subsidiaries which include St.George Bank, Bank of Melbourne and BankSA.

NAB (National Australia Bank)

NAB was established in 1981 after the National Bank of Australasia merged with the Commercial Banking Company of Sydney. According to its website, NAB supports more than 8.5 million customers across Australia and overseas.

It is Australia’s third biggest home loan lender, with NAB home loans offering competitive rates and prices across its products. It also owns ubank which entered the market in 2008 as Australia’s first homegrown digital bank.

ANZ (Australia and New Zealand Banking Group)

ANZ was established in 1951 following a merger between the Bank of Australasia and the Union Bank of Australia. It serves over 8.5 million retail and business customers and spans close to 30 markets. ANZ was also the first Australian bank to introduce contactless payments via Apple Pay.

While it’s considered the smallest of the big 4 banks in terms of home loan book size, ANZ’s home loans are particularly unique for offering fixed rate home loans for durations up to 7 and 10 years.

The lowest interest rates currently available from the big 4 lenders for both owner occupiers and investors are seen from CommBank’s Digi Home Loan. It’s a variable rate home loan that’s only available through CommBank’s online channels.

Lowest owner occupier variable home loan rate:

• 6.09% p.a. (6.22% p.a. comparison rate) CommBank Digi Home Loan Owner Occupied 60% LVR

Lowest owner occupier fixed home loan rate:

• 6.29% p.a. (7.05% p.a. comparison rate) ANZ Bank 2-years Fixed Rate Home Loan 80% LVR

Lowest investment variable home loan rate:

• 6.19% p.a. (6.32% p.a. comparison rate) CommBank Digi Home Loan Investor 60% LVR

Lowest investment fixed home loan rate:

• 6.39% p.a. (7.54% p.a. comparison rate) ANZ Bank 2-years Fixed Rate Investment Loan 80% LVR

Generally, borrowers will find lower rates from smaller home loan lenders, than with the big 4 banks. Many of these lenders offer lower rates to win over customers and instead cut overhead costs by operating primarily online with fewer staff and physical branches. Interest rates will also differ based on the loan type, the loan-to-value ratio (LVR) and amount.

It’s important to keep in mind when choosing a home loan that having the lowest rate on the market may not be the best solution for your situation. There may be additional fees that will drive up the cost or particular features, such as an offset account, that will save you money over time. If you’re uncertain, a quick chat with a mortgage broker could be worthwhile to compare rates, fees and features, as well as to weigh up the most suitable options.

The tables below compare the lowest rates available from the big 4 banks with the lowest rates from other lenders.

Compare investment and owner occupier home loans from smaller lenders:

• Macquarie Bank home loan rates

• Suncorp Bank home loan rates‍

• Athena home loan rates

• ING home loan rates

• Bankwest home loan rates

• St.George Bank home loan rates

• Unloan home loan rates