Big Four banks home loans

Big four bank home loan rate comparison

Rates and Fees verified correct on January 16th, 2017

How these things will change the way you approach the big four banks.

The big four banks in Australia, the Commonwealth Bank, Westpac, ANZ and NAB play a key role in the Australian economy and have the financial stability to keep your home loan safe. They are well managed, regulated and hold nearly 85% of the home loan market share between them.

Below are the most up-to-date standard variable rates for the big four. If you scroll down further you can see more of the rates on offer from the big four and also other competitive rates offered by other lenders.

Big four standard variable rates comparison

LoanInterest rate (p.a.)Comparison rate (p.a.)
ANZ Standard Variable Home Loan5.25% p.a.5.35% p.a.
CBA Standard Variable Home Loan (Owner Occupier P&I)5.22% p.a.5.37% p.a.
NAB Tailored Home Loan Variable Rate (Owner Occupier P&I)5.25% p.a.5.38% p.a.
Westpac Rocket Repay Home Loan - Principal and Interest5.29% p.a.5.43% p.a.

Compare home loans from the big four banks and others to find the right deal for you

Rates last updated January 16th, 2017
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options.
3.98% 4.87% $0 $395 p.a. 95% Go to site More info
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
3.99% 4.37% $0 $0 p.a. 95% More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.04% $0 $395 p.a. 95% More info
ANZ Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
Lock in your rate for 2 years with an interest only option.
4.13% 5.10% $600 $10 monthly ($120 p.a.) 95% More info
NAB Choice Package Home Loan - 1 Year Fixed (Owner Occupier)
A low interest rate home loan with flexible repayment options. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.89% 4.98% $0 $395 p.a. 95% Go to site More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 5.00% $0 $395 p.a. 95% More info
4.49% 5.49% $600 $8 monthly ($96 p.a.) 95% More info
Commonwealth Bank No Fee Variable Rate - Owner Occupier
A home loan with no establishment fees or monthly fees.
4.52% 4.52% $0 $0 p.a. 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years
A low interest rate home loan and competitive two year fixed rate.
4.19% 5.32% $0 $395 p.a. 95% More info
ANZ Simplicity PLUS Basic Home Loan - Variable
Make extra repayments and then access them through the fee free redraw facility.
4.55% 4.60% $0 $0 p.a. 95% More info
Westpac Fixed Options Home Loan - 2 Years
A fixed rate with redraw facility and portability options.
4.19% 5.32% $600 $8 monthly ($96 p.a.) 95% More info
ANZ Standard Variable Home Loan  - Variable
Make additional repayments and use your 100% offset to pay off your loan sooner.
5.25% 5.35% $600 $5 monthly ($60 p.a.) 90% More info
Westpac Rocket Repay Home Loan
An option to link a 100% offset account to save on interest.
$600 $8 monthly ($96 p.a.) 95% More info
Commonwealth Bank Wealth Package Fixed Home Loan - 3 Year Fixed (Owner Occupier) P&I
Lock in a discounted rate for 3 years and have the option for interest only repayments.
4.09% 4.96% $0 $395 p.a. 95% More info
NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
A great variable package from NAB which includes offset and redraw features. No application fee.
4.40% 4.79% $0 $395 p.a. 95% Go to site More info
Westpac Fixed Options Home Loan - 1 Year
Fix in a rate for one year and enjoy a range of features such as interest only repayments.
4.59% 5.47% $600 $8 monthly ($96 p.a.) 95% More info
Westpac Equity Access
A loan with low minimum loan amount , low ongoing fee and borrow up to 95% LVR.
5.80% $600 $10 monthly ($120 p.a.) 95% More info
Westpac Premier Advantage Package Variable Home Loan - Rocket Repay  ($150,000 to $249,999, P&I)
Package Westpac's standard variable home loan with all the additional features available with the Premier Advantage Package.
4.69% 5.07% $0 $395 p.a. 95% More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time.
4.10% 4.14% $600 $0 p.a. 95% Go to site More info
3.99% 4.57% $600 $8 monthly ($96 p.a.) 80% More info
ANZ Breakfree Package Home Loan - 3 Year Fixed (Owner Occupier)
Pay no application fee and fix your interest for 3 years with this ANZ package home loan.
4.19% 4.68% $0 $395 p.a. 95% More info
ANZ Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier)
A fixed rate loan that has the option to make additional repayments up to 5% of the loan.
4.34% 5.07% $600 $10 monthly ($120 p.a.) 95% More info
Commonwealth Bank Fixed Rate Home - 3 Year Fixed Rate (Owner Occupier)
Lock in a competitive fixed rate for 3 years with one of the big 4 banks.
4.24% 5.10% $600 $8 monthly ($96 p.a.) 90% More info
ANZ Breakfree Home Loan Package  - $700,000+ (Owner Occupier)
No application fee and discounts on other ANZ banking products.
4.55% 4.65% $0 $395 p.a. 95% More info
NAB Tailored Home Loan - Owner Occupier (P&I)
You can link your home loan to a 100% offset to help reduce the interest rate on the loan.
5.25% 5.38% $600 $8 monthly ($96 p.a.) 95% Go to site More info
ANZ Breakfree Home Loan Package  - $250,000 to $699,999 (Owner Occupier)
With a 100% offset account and a discounted interest rate package your loan with ANZ.
4.65% 4.75% $0 $395 p.a. 95% More info
Rates last updated January 16th, 2017
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options.
3.98% 4.87% $0 $395 p.a. 95% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.42% $0 $375 p.a. 85% Go to site More info
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
State Custodians Standard Variable Spring Special - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.59% 3.92% $0 $299 p.a. 80% Go to site More info
IMB Accelerator Home Loan  - LVR <=80% $300k+ (Owner Occupier)
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
3.64% 4.39% $445 $0 p.a. 80% Go to site More info
ME Flexible Home Loan With Member Package - LVR <=80% $400k up to $699,999 (Owner Occupier)
Enjoy a discount of a competitive interest rate and 100% offset account.
3.94% 4.35% $0 $395 p.a. 80% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A low-interest rate loan suited for refinancing with no application or ongoing fees.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74% 4.12% $0 $395 p.a. 95% Go to site More info
State Custodians Breathe Easy Spring Special  - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.72% 3.75% $0 $0 p.a. 80% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.69% 4.56% $600 $0 p.a. 95% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
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What we've learned from the Global Financial Crisis

The issue of financial stability has been a hot topic since the Global Financial Crisis (GFC). Bear Stearns was purchased by JPMorgan Chase for just $10 per share in March 2008. In September later that year, two government-chartered lenders Freddie Mac and Fannie Mae were placed in the care of the US government. The Lehman Brothers collapsed not long after and Merrill Lynch soon sold itself to Bank of America. In Australia the impacts were felt too, the Commonwealth Bank acquired Bankwest and Westpac acquired St.George.

Since then, Australians have been more aware about the financial security of their loans and products, looking for some sort of guarantee or protection should their bank go bust.

However, it could be wise to borrow outside the safety of the big four banks. Many smaller lenders have competitive interest rates and more flexible terms than the major banks. With the Gillard Government banning exit fees, it provides you with more leverage and choice to refinance to a better home loan.

During the GFC, the introduction of the Government guarantee of bank deposits also prompted the myth that lenders beside the big four were unsafe, however, the guarantee only extends to deposits and not loans.

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All registered financial institutions are regulated to absorb financial shocks

All registered financial institutions including credit unions, second tier lenders, online lenders and building societies are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

APRA is responsible for the prudential supervision of authorised deposit-taking institutions, such as implementing the Basel reforms to ensure that financial institutions are more resilient to economic shocks. 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.

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Pros and considerations of the big four banks

Pros
  • Large ATM network and more branches
  • Competition between the big four is very high, so if one reduces their rates, the other three will likely do it too
  • Biggest market share (also a consideration)
  • Tend to be more financially stable
  • Offer better packaged loans and rates
  • Don't really specialise in non-conforming loans
  • More trust from the borrower
  • Have migrant banking services for non-residents
Cons
  • Tend to have higher interest rates
  • Tend to lack in customer service

Frequently asked questions

Will the big four ever end?

If borrowers start looking elsewhere for a better deal, the big four may have to change their game plan.

Does the big four have any subsidiaries?

  • Westpac is associated with St.George, Bank of Melbourne, BankSA and RAMS.
  • Commonwealth Bank holds Bankwest
  • NAB is associated with UBank

Are there any alternatives to the big four?

You may want to consider international banks such as Citibank and HSBC. There is also ME Bank, Bendigo Bank, Bank of Queensland, ING Direct, Bankmecu or Suncorp.

Why are the big four so bad?

The big four can be seen in a negative light for some due to their high margins and profits. Some consumers argue that these banks only exist to reap in profits.

Photo: Sydney Morning Herald

Shirley Liu

Shirley is finder.com.au's publisher for banking and investments. She has completed a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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Related Posts

ME Basic Home Loan - LVR <=80% Owner Occupier

A low variable rate loan with no application or ongoing fees.

NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier)

Receive discounts on interest rates with the Choice Package.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.

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