Home loan rate check: How do ANZ, CBA, NAB and Westpac compare?

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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. However, these major lenders don’t always have the cheapest offers around – or at least, the lowest rates. 

In fact, all four have hiked variable interest rates in response to the RBA’s latest decision, as well as doled out a handful of dramatic fixed rate hikes. This pushes many of their interest rates beyond pre-pandemic levels – despite house prices also experiencing a record boom since then.

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

Variable rates: Economic inflation pushes up interest rates

Now that the RBA has made movements to the cash rate for the first time since 2020, the era of variable rate cuts has come to a close for the time being.

The major banks have all joined in, lifting their standard variable rates for owner occupiers by 1.25% p.a. over the course May through July.

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

Lowest variable rates Big Four banks (<80% LVR) - July 21, 2022^^

LenderLoanVariable rate
CommBank
Extra Home Loan3.39% p.a. (3.41% p.a. comparison rate*)
NABBase Variable Rate Home Loan Special Offer3.44% p.a. (3.48% p.a. comparison rate*)
ANZSimplicity PLUS Special Offer3.54% p.a. (3.55% p.a. comparison rate*)
WestpacFlexi First Option Home Loan Special Offer3.64% p.a. (3.58% p.a. comparison rate*)

While some of these offers from the major banks are certainly competitive, there are currently over 40 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 (<80% LVR) - July 21, 2022^^

LenderLoanVariable rate
Pacific Mortgage Group
Standard Variable Home Loan (LVR 60-80%)
2.54% p.a. (2.54% p.a. comparison rate*)
Reduce Home LoansEconomizer Variable (LVR <80%)2.57% p.a. (2.64% p.a. comparison rate*)
Tic:TocVariable Home Loan2.59% p.a. (2.60% p.a. comparison rate*)
Firefighters Mutual BankYour Way Basic Variable Home Loan2.64% p.a. (2.68% p.a. comparison rate*)

The average variable rate in the Mozo database (OO, P&I, <80% LVR) currently sits at 3.99% p.a. – 71 basis points below the average variable rate offered by the four major banks (4.70% p.a.).

So what does this difference actually mean for your budget? As the table below shows, by refinancing from a variable rate of 4.70% p.a. to a lower rate of 2.54% p.a., borrowers could save $447 on their monthly repayments — and $107,176 over the life of their loan.

Variable rates for $400,000 loan over 20 years — OO, P&I, LVR <80%

CategoryVariable rateMonthly repaymentsTotal interest paid
Mozo database lowest
2.54% p.a.
$2,127
$110,580
Big Four lowest3.39% p.a.$2,297$151,350
Mozo database average3.99% p.a.$2,422$181,235
Big Four average4.70% p.a.$2,574$217,756

Note: This is a hypothetical and variable rates are likely to change over the course of a loan. Variable rates in the table are for owner occupiers making principal and interest repayments on a loan amount of $400,000 over 20 years with an LVR <80%.

Of course, the figures in the table are based on the specific scenario outlined above, but you can crunch your own numbers using our mortgage repayments calculator.

Fixed rates: Majors lose ground after hikes

As for fixed rate loans, lenders across the board have been lifting rates in anticipation of RBA cash rate movements. This has massively reshuffled the top lenders, with the Big Four averages ranking noticeably higher than smaller lenders.

Mozo fixed rate averages vs Big Four averages (<80% LVR) - July 21, 2022^^

TermMozo database averageBig Four average
1-year4.71% p.a.
4.80% p.a.
2-year5.31% p.a.5.64% p.a.
3-year5.65% p.a.5.98% p.a.
4-year5.93% p.a.6.24% p.a.
5-year6.09% p.a.6.34% p.a.

The effect on fixed interest rates has been so dramatic Mozo banking expert Peter Marshall commented, “Fixed rates are basically out of the market now. The big banks are certainly not trying to attract customers with their fixed rates, so they’re looking at what they can do to get people in the door and give them their loans.”

However, there are plenty of lower fixed rate home loans around. Here are some of the sharpest in the Mozo database.

Lowest fixed rates in the Mozo database - July 21, 2022^^

TermRate leaderFixed rate
1-yearHomeloans360 (Fixed Home Loan)3.49% p.a. (2.71% p.a. comparison rate*)
2-yearGoldfields Money (Fixed Home Loan)4.24% p.a. (4.41% p.a. comparison rate*)
3-yearGoldfields Money4.74% p.a. (4.48% p.a. comparison rate*)
4-yearRAMS (Fixed Rate)5.29% p.a. (4.42% p.a. comparison rate*)
5-yearRAMS5.39% p.a. (4.58% p.a. comparison rate*)

RELATED: Fixed term ending soon? You could be paying $7,800 more a year

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 home loan 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. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

Loan details

Rate change

Repayment change if rates go up

Refinance home loans - last updated 13 August 2022

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

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

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details
  • PAYG Investor Loan

    Investment, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.68% p.a.

    Low variable rate. Ideal for investors buying or refinancing. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Smart Booster Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    3.74% p.a.variable for 12 months and then 4.23% p.a. variable
    4.22% p.a.

    Already includes July RBA rate increase. No monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

    Details

* 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 Loan Awards

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