Compare Big Four home loan interest rates: How do ANZ, CBA, NAB and Westpac stack up?

By Evlin DuBose and Jack Dona
Fact Checked
Advertiser disclosure

Key Points:

  • The Big Four Banks in Australia (Commonwealth Bank, NAB, ANZ, and Westpac) lend most home loans in Australia.
  • Smaller lenders often have lower home loan interest rates than the Big Four.
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If you have a home loan, odds are it’s with one of the Big Four: ANZ, Commonwealth Bank, NAB, or Westpac.

While these banks are household names, they don't always offer the lowest interest rates. 

In fact, all four have hiked variable interest rates in response to decisions made by the Reserve Bank of Australia, totalling 4.25% p.a. worth of rises since May 2022.

So if you’re with one of the Big Four, is there an opportunity to save? Here’s how their home loan rates for owner-occupied properties compare to other Australian lenders.

Big Four variable rates compared (ANZ, CBA, NAB and Westpac)

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The Reserve Bank aims to curtail inflation by hiking the cash rate. The Big Four have followed suit with every rate movement, lifting their standard variable rates for owner-occupiers by 4.25% p.a. since May 2022.

Some of the main trends for early 2024 include:

  • Raising or eliminating introductory interest rate discounts for new customers.
  • Making small “out-of-cycle” rate adjustments.
  • Removing special offers like refinancing cashback.

At the time of writing, these are now the lowest rates on offer from the Big Four.

Lowest variable rates Big Four banks (LVR < 80%) – 22 April 2024^^

Bank
Loan
Variable rate
ANZ
Simplicity PLUS Special Offer
6.64% p.a. (6.64% p.a. comparison rate*)
CBA
Extra Home Loan
6.79% p.a. (6.81% p.a. comparison rate*)
NAB
Base Variable Rate Home Loan
6.84% p.a. (6.88% p.a. comparison rate*)
Westpac
Flexi First Option Home Loan Special Offer
6.94% p.a. (6.86% p.a. comparison rate*)

While some of these offers from the major banks are undoubtedly competitive, there are currently over 30 lenders in our database with lower rates on comparable loans. 

The table below provides an overview of the cheapest variable rates among lenders we track.

Lowest variable rates Mozo database (LVR < 80%)  – 22 April 2024^^

Lender
Loan
Variable rate
G&C Mutual
Essential Worker Home Loan
5.80% p.a. (5.83% p.a. comparison rate*)
Homeloans360
Owner Variable Home Loan
5.89% p.a. (5.89% p.a. comparison rate*)
Homestar
Star Essentials Home Loan5.89% p.a. (5.99% p.a. comparison rate*)
Pacific Mortgage Group
Standard Variable Home Loan
5.89% p.a. (5.89% p.a. comparison rate*)

The average variable rate in the Mozo database (OO, P&I, LVR < 80%) currently sits at 6.83% p.a. – 58 basis points below the average variable rate offered by the four major banks (7.41% p.a.).

So what does this difference actually mean for your budget? As the table below shows, by refinancing from a variable rate of 7.48% p.a. to a lower rate of 5.80% p.a., borrowers could save $400 on their monthly repayments — and $121,218 over the life of their loan.

Variable rates for a $400,000 loan over 25 years — OO, P&I, (LVR < 80%)

Category
Variable rate
Monthly repayments
Total interest paid
Mozo database lowest
5.80% p.a.
$2,529
$358,558
Big Four lowest
6.64% p.a.
$2,736
$420,778
Mozo database average
6.83% p.a.
$2,784$435,166
Big Four average
7.41% p.a.
$2,933$479,776

Of course, the figures in the table are based on the specific scenario outlined above. You can crunch your own numbers using our mortgage repayments calculator, and even brace for rate hikes with our new rate change calculator.

When will rates come down?

Big Four fixed rates compared (ANZ, CBA, NAB and Westpac)

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As for fixed rate loans, lenders have slowly begun pricing down longer terms while shorter terms have risen.

This ‘lender forecasting’ has again reshuffled the top lenders, with the Big Four averages still ranking noticeably higher than smaller lenders for shorter terms.

Mozo fixed rate averages vs Big Four averages (LVR < 80%)  – 22 April 2024^^

Term
Mozo database average
Big Four average
1-year
6.46% p.a.
6.72% p.a.
2-year
6.33% p.a.
6.73% p.a.
3-year
6.27% p.a.
6.69% p.a.
4-year
6.46% p.a.
6.77% p.a.
5-year
6.36% p.a.
6.83% p.a.

However, there are still fixed-rate home loans on the lower end of the spectrum. Here are some of the sharpest in the Mozo database.

Lowest fixed rates in the Mozo database, OO and P&I (LVR < 80%)  – 22 April 2024^^

Term
Rate leader
Fixed rate
1-year
HSBC
5.79% p.a. (6.51% p.a. comparison rate*)
2-year
Australian Mutual Bank
5.53% p.a. (6.30% p.a. comparison rate*)
3-year
Australian Mutual Bank
5.48% p.a. (6.24% p.a. comparison rate*)
4-year
HSBC
5.69% p.a. (6.37% p.a. comparison rate*)
5-year
Australian Mutual Bank
5.63% p.a. (6.16% p.a. comparison rate*)

Interested in saving money? Start your search for a lower interest rate today by checking out the many loans and lenders featured in our handy refinance comparison table, or cast your eyes over some of the hot offers listed below!

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR.

Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.

Refinance home loans - last updated 4 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
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Calculators

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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