Finder makes money from featured partners, but editorial opinions are our own.
Big Four bank home loans – current rates and offers
Think the biggest banks offer the best deals? See current home loan offers from Australia's Big Four banks, and how they compare to the rest of the market.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
See how the Big Four banks compare with other lenders
This table contains some of the most competitive fixed and variable rates from banks outside the Big Four, including non-bank lenders and online lenders. While some of the products listed here are not currently available through Finder you can still research the loans and then contact lenders directly.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Australia's four banking giants are all unique in their own way and together, they account for roughly 75% of all mortgages in Australia.
The Commonwealth Bank. Australia's largest bank, CBA is a massive institution with a strong market share and over 15 million customers. The bank has an extensive branch network and a popular banking app.
Westpac. Australia's second biggest bank, Westpac started life as the Bank of New South Wales in 1817. Westpac owns many well-known finance brands, including St.George, Bank of Melbourne and BankSA.
NAB. The National Australia Bank has been around for almost 160 years and has 9 million customers, mainly in Australia and New Zealand but also across the globe. Digital lender UBank is owned by NAB.
ANZ. This bank has a strong presence in both Australian and New Zealand. ANZ now operates in 33 markets around the world.
How much of the mortgage market belongs to the Big Four?
The Big Four are the largest players in Australia's home loan market by far. To understand just how large their share of the market is, here's a snapshot of the latest APRA data showing the value of owner occupier and investor loans held by the Big Four and several of their nearest competitors.
This table shows the value of home loans "on the books" at each lender. Even the smallest of the Big Four holds more than three times more mortgages in dollar terms than the next smallest competitor.
Big Four bank home loan features
A home loan from one of the Big Four offers the same features as other lenders. Features such as extra repayments, redraw facilities and offset accounts are common.
Package loans
While by no means exclusive to the largest banks, the Big Four often advertise their premium package loans. These products let you bundle a home loan with a credit card, bank account (which functions as an offset account) and other products. These days, the big banks often have the most competitive offers on their package loans and may offer a cashback if you switch to them from another lender.
And that's a big part of why banks do package loans. They want all your business, not just your mortgage.
Basic home loans and introductory discount rates
Again, not exclusive to the Big Four, but these banks frequently offer these two types of products. Basic home loans have low variable rates (usually) but don't have offset accounts. Introductory rate loans offer a very low (usually variable) rate for an initial period, but increase later.
What are my alternatives to a home loan from the Big Four?
Mortgage lending in Australia is a thriving, crowded industry, with lenders big and small looking to lend you money. So it's always worth comparing a wide range of home loans. Alternatives to the major lenders include:
Online lenders. If you're comfortable with applying online or over the phone an online lender could be convenient and save you money. These lenders often have the cheapest interest rates.
Non-banks. Credit unions, building societies and other non-bank institutions offer mortgages and are also very competitive. Some of these institutions limit their lending to states, cities or geographic regions.
Smaller banks. Many local banks can serve customers in cities, states or large portions of the country. There are also newer bank brands, often operating online, which offer cheaper rates. Some of these brands are owned by one of the Big Four.
Fintechs and neobanks. Smaller, high-tech startups are beginning to enter the mortgage market. They can be very competitive and convenient if you're comfortable with banking via an app.
Lenders in the categories above often overlap. A small bank could be entirely online, while credit unions may have limited physical branches and a strong online service. And some banks are starting to use the technology of the fintechs.
Is my cash safer with a big bank?
Not necessarily. All of Australia's Big Four are Authorised Deposit-Taking Institution (ADI). But so are almost all the smaller banks, credit unions and digital banks. You can find more detailed information here.
In the unlikely event your lender goes bankrupt, it won't affect your ownership of the property as your loan account would pass to a new institution, who bought the assets of your now-defunct lender.
The only lenders who might not be covered by the bank guarantee scheme are very small neobanks, which are essentially financial start-ups. Most of these companies obtain a banking license or partner with someone who has one, and is an ADI. .
What are the benefits of getting a mortgage with a big bank?
Convenience and service. The Big Four have the largest networks of ATMs and physical branches. For many people, face-to-face service and brick and mortar branches are very important.
Product range. The big lenders have products for most Australian borrowers and a greater range than many smaller lenders.
Stability. Even small Australian lenders are heavily regulated, so this shouldn't be a big concern. But the Big Four are the oldest and biggest lenders for a reason.
Service. The Big Four have large customer service departments. They are also the most likely to have dedicated migrant banking services for non-residents.
Are there any downsides to banking with the Big Four?
In most respects the Big Four are as good as any other lender. But depending on what you're looking for, you might be better served with one of their smaller competitors. Here are a few reasons why:
Lowest interest rates
Most of the time, the Big Four banks don't offer the absolute lowest interest rates on the market. Smaller lenders, especially online lenders, could offer more competitive deals, with their reduced overheads and online infrastructure. In the current market, each of the Big Four offer very low fixed rate home loans that are among the lowest on the market (you can compare some of them in the table above). The Big Four banks also offer quite competitive variable rate loans too.
Options for non-conforming borrowers
The Big Four don't specialise in loans for borrowers who have unique needs, such as borrowers who are self-employed, have a complex financial situation, have poor credit histories or are discharged bankrupts. This is where mortgage brokers and smaller, specialist lenders can help, as their loan policies and lending criteria may be more flexible.
Technology and customer service
The Big Four have strong online banking and well-designed apps, but there are smaller fintech lenders and neobanks who offer faster service, better apps and more tools to help you manage your mortgage. Although the gap in technology between new players and the old banks is shrinking all the time.
What about trust, stability and regulations? Are the big banks safer?
Australian lenders are relatively stable. As mentioned earlier, all registered financial institutions, regardless of their size, are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities & Investments Commission (ASIC).
Financial institutions are required to hold a certain portion of capital, as they provide a permanent commitment of funds and are available to absorb losses.
The lender takes on the risk, not the borrower
If your lender went bankrupt tomorrow you would still owe money to whoever took control over your old lender. This is quite rare, and wouldn't actually affect your mortgage contract.
Some smaller lenders are actually backed by the Big Four
You might not know this, but the nation's biggest institutions own or are associated with the following financial brands:
NAB.UBank is a digital bank owned by NAB, although it operates by its own brand philosophy and strategy.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification.
Refinancing your home loan can get you a better interest rate, adjust your loan term and take advantage of new features, but there are some things to look out for to make sure it's the right decision for you.
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
What is an offset account? It can save you thousands in interest and help you own your home sooner.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
