CommBank scores biggest improvement in customer satisfaction out of big four banks

Customer satisfaction with three of the big four banks is on the rise, with CommBank showing the largest improvement of 0.7%, putting its satisfaction level at 82.4%, according to new research from Roy Morgan.

In December last year, the big four banks improved customer satisfaction by 0.5% in total, with CommBank taking the lead, followed closely by Westpac with a 0.6% increase and ANZ up by 0.5%. While NAB was the only big four bank to see a decline in customer satisfaction of 0.2%, it still sits in second place with an overall customer rating of 80.2%.

Satisfaction with banks in general is close to historically high levels, having increased to 82.4% in December 2015, up from 79.3% in December 2011.

The improvement with the big four was due to a 0.6% rise in satisfaction from home loan customers (to 78.8%) and a 0.5% rise among other customers (81.4%).

Industry Communications Director at Roy Morgan Research, Norman Morris, attributed the increase to the effect of October's home loan rate hike wearing off, saying, “The home-loan rate increase by the big four banks in October adversely impacted their home-loan customer satisfaction in October and November, but appears to be showing some improvement in December.”

RELATED: Good news for investors as lenders reduce interest rates

Despite the improvements, however, satisfaction with the big four banks continues to trail behind that of the mutual sector, which includes building societies, credit unions and customer owned banks. Customer satisfaction for mutual banks remained unchanged in December, but still came out on top with a significantly high 91.2% rating.

And it’s no wonder, considering that Mozo’s database shows the average big four variable home loan rate is 5.03%, compared to the average mutual bank rate of 4.75%. Our home loan comparison calculator shows on a $500,000 home loan over 25 years, choosing a mutual bank could save you up to $24,333 in interest over the life of the loan.

Tips for finding a competitive home loan

  1. Be realistic about what you can borrow. Sit down and crunch the numbers, or check out our borrowing calculator, and work out how much a provider is likely to lend you. After that, think realistically about what kind of repayments you can afford to make. Based on that, you can choose a loan amount that won’t leave you on a shoestring budget.

  2. Save up a deposit. Many home loans providers will let you borrow up to 95% of the property value, but we recommend saving 20% for a deposit if you’re able to. The bigger deposit the smaller the loan, and the more manageable repayments will be. Plus, a deposit over 20% will mean you won’t have to shell out for lenders mortgage insurance.

  3. Check out first home owner’s grants. A great way to shave down the price of your first home is by applying for a grant, which will usually provide a lump sum payment (generally if you’re purchasing a new property), plus exempt you from hefty fees like stamp duty.

  4. Decide which type of home loan is right for you. Are you looking at a fixed interest rate, or variable? How about a little of both. Each have their pros and cons, so make sure you consider which one is right for you before going ahead.

  5. Compare the options. Don’t just choose the first home loan you come across. It’s well worth your time to shop around and find the best deal, that will not only save you money, but allow you to pay off your home loan in a way that suits your lifestyle and budget. Check out our home loans comparison table to get started.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

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  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 3 years
    2.22% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.43% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

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    Details
  • Hot Deal$3,000 cashback when you refinance with Virgin Money (T&Cs apply)
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    Special Offer Reward Me Fixed Rate Home Loan

    Owner Occupier, LVR <80%, 300k+

    interest rate
    comparison rate
    Initial monthly repayment
    1.94% p.a.
    fixed 2 years
    2.77% p.a.

    Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.

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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, loan amount and term entered. 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 Loans Awards

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