Are the big banks safer?

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 . 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. 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.

What are the big four bank interest rates?

Interest rates from the big four banks vary depending on the loan type and your LVR. They typically do not have the lowest rates on the market though. Currently, the lowest rate available by a big four bank is 5.74% from ANZ. This is for a 2 year fixed rate with a 30% deposit. ANZ also offers the best variable interest rate at 6.09% for an owner occupier loan through its ANZ Plus brand.