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

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.
• All Big Four banks have recently cut interest rates on select home loans. 

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.

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 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
• Slashing fixed interest rates.

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%) – 1 December 2024^^

While some of these offers from the major banks are undoubtedly competitive, there are currently lenders in our database with lower rates on comparable loans, highlighting why it's crucial to compare. 

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

Lowest variable rates Mozo database (LVR <80%)  – 1 December 2024^^

The average variable rate in the Mozo database (OO, P&I, LVR < 80%) currently sits at 6.74% p.a. – 41 basis points below the average variable rate offered by the four major banks (7.15% p.a.).

So, what does this difference mean for your budget? As the table below shows, by refinancing from a variable rate of 7.15% p.a. to a lower rate of 6.74% p.a., borrowers with a $400,000 mortgage could save $105 on their monthly repayments — and $31,316 in total interest paid.

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

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 rate change calculator.

As for fixed rate loans, the Big Four banks have recently made cuts to many of their terms. 

These cuts have brought the Big Four's average fixed rates largely into line with the averages in the Mozo database. 

Mozo fixed rate averages vs Big Four averages (LVR <80%)  – 1 December 2024^^

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

Lowest fixed rates in the Mozo database, OO and P&I (LVR <80%)  – 1 December 2024^^

• 1 year: Easy Street Fixed Home Loan | 5.74% p.a. (6.06% p.a. comparison rate*) 
• 2 years: Easy Street 2 Year Fixed Home Loan | 5.49% p.a. (6.02% p.a. comparison rate*) 
• 3 years: Police Credit Union 3 Year Fixed Rate Home Loan Special Offer | 5.39% p.a. (6.59% p.a. comparison rate*) 
• 4 years: Newcastle Permanent Special Fixed Rate Home Loan | 5.69% p.a. (7.55% p.a. comparison rate*) 
• 5 years: Heritage Bank Fixed Loan | 5.69% p.a. (7.79% 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.