Note: Interest rates from the Big Four banks are usually higher than their smaller competitors, but in response to the coronavirus pandemic and recent cash rate cuts the big banks now offer some very competitive rates.
Most Australians bank with the Big Four, but you could be missing out on a better mortgage product from a smaller lender. Smaller Australian lenders are regulated by APRA and ASIC, just like the Big Four, and can be just as good as the banking giants.
Use this page to compare Big Four bank home loan rates and get more information about how to choose the right lender for you.
Fixed Rate Home Loan Offer
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed Rate With Wealth Package (Owner Occupier, P&I, $150k+)
Fixed Rate Home Loan Offer
The Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier P&I) has a discounted fixed interest rate and no application fee. Plus you can make fee-free extra repayments during the fixed term. $2,000 cashback offer for eligible refinancers.
Hit "load more" to see a fuller selection of home loans and hit "More info" to learn more about a particular product. The "Enquire now" buttons allow to you leave your details and speak to a mortgage broker for more help. Some of these products are not currently available through Finder.
Australia's four banking giants are all unique in their own way and together hold roughly 75% of the market. We've listed them here by size, as measured in market capitalisation (according to KPMG's Major Australian Banks report).
The Commonwealth Bank. Australia's largest bank, CBA is a massive institution with a strong market share (and over 15 million customers).
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.
ANZ. This bank has a strong presence in both Australian and New Zealand. ANZ now operates in 33 markets around the world.
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.
Is my cash safer with a big bank?
After settlement, your lender has provided the money to cover your property purchase. So in the unlikely event your lender goes bankrupt it won't affect your ownership of the property. But what if you have money saved in an offset account?
In Australia, if your lender is an Authorised Deposit-Taking Institution (ADI) then the government will guarantee money saved in a bank account, including an offset account, up to a maximum of $250,000. This means if your lender does go bust your offset cash is protected.
All of Australia's Big Four are ADIs, but so are almost all the smaller banks, credit unions and digital banks. So while it's worth checking before signing a mortgage contract, most lenders will be covered by the federal guarantee. You can find more detailed information here.
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. 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 lowest 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.
Compare home loan rates from other competitive lenders
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?
Low rates. If you want the absolute lowest interest rates on the market there are lower options than the Big Four. It's not always a huge difference, but shaving 20-30 basis points off your mortgage can have a noticeable impact on your repayments.
Few options for non-conforming borrowers. If you have bad credit or are self-employed you might have a harder time getting approved for a mortgage from the big banks. This is where mortgage brokers and smaller, specialist lenders can help.
Technology. The Big Four have strong online banking and well-designed apps, but there are smaller fintech lenders and neobanks offering 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 senior writer at Finder covering home loans and property. He helps everyone understand the ins and outs of mortgages so they can make smarter property decisions. Richard trained as a high school English teacher but found it easier to manage personal finances than a classroom full of kids. Before joining Finder, he edited textbooks and taught English to office workers in South Korea. Richard has a Bachelor of Education and a Graduate Certificate in Communication.
In this submission to the Treasury inquiry into Future Directions for the Consumer Data Right being led by Scott Farrell, we focus on the topic of switching and how this could be encouraged through the introduction of write-access to the CDR. We also share some details on switching in the industries set to be covered by the CDR, as well as high-level views on how write-access could be used to enable payment initiation through the CDR.
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.
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