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

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With the new financial year upon us and plenty of Australians currently stuck at home, now’s a great time to check in with your finances, including your home loan.

Chances are your mortgage is with one of either ANZ, Commonwealth Bank, NAB or Westpac which, according to APRA’s latest Authorised Deposit-taking Institution Statistics, control roughly 77% of the residential mortgage market.

These major lenders don’t always have the most competitive home loans offers around though - at least, not when it comes to interest rates. So if you’re with one of the big four, is there an opportunity to save money on your mortgage?

That’s the question we’ve set out to explore below by looking at how the big four banks compare to the rest of the market on home loan rates for owner occupiers.

Behind the pack on variable rates

Let’s start off by locking at loans with a variable rate.

Most homeowners with a variable rate mortgage will have noticed a drop in their interest rate in recent years, as banks have responded to multiple Reserve Bank (RBA) cuts by reducing their own rates.

Despite the last RBA cut occurring back in November, we’ve continued to see variable rates fall over the past seven months, with the average variable rate for owner occupiers in the Mozo database dropping from 3.34% to 3.24% over that period.   

As you’d expect, plenty of lenders have shifted their rates during that time, but there’s been almost no movement from the big four. The cut ANZ made to its Variable Rate (Breakfree Package) loan back in April is actually the only variable rate reduction from one of the majors since September 2020!

As a result, the average owner occupier variable rate from the big four is currently sitting at 3.53% - noticeably higher than our database average.

There are also currently over 60 lenders in the Mozo database which are offering a comparable home loan with a variable rate lower than the best available from the big four: the 2.69% (2.69% comparison rate*) with NAB’s Base Variable Rate Home Loan.

What does this all mean though? Well, many big bank mortgage customers could be paying more than they need to.

Major banks vs Mozo database (average and lowest variable rates) - July 1, 2021

Variable rateMonthly repaymentsTotal interest
Big four (average)3.53%$2,326$158,242
Mozo database (average)3.22%$2,263$143,048
Big four (lowest)2.69% (2.69% comparison rate*)$2,157$117,639
Mozo database (lowest)1.99% (2.05% comparison rate*)$2,022$85,193

Note: The variable home rates in the table above come from loans tracked in the Mozo database. They are based on the following scenario: an owner occupier making principal and interest repayments on a loan amount of $400,000 over 20 years with an LVR <80%. 

As the table shows, a borrower able to refinance from a variable rate of 3.53% to a lower rate of 3.22% could lower their monthly repayments by $63 and save a considerable $15,194 in interest over the life of their loan.

Of course, that’s based on the specific scenario outlined above, but you can crunch your own numbers using our mortgage repayments calculator.

Keeping pace on fixed rates

What about fixed home loans?

Well, there’s been plenty of chopping and changing in recent months, particularly to longer term fixed rates which many lenders - including the big four - have increased since they reached a low mark in March.

Broadly speaking though, fixed rates are very low. Certainly among the sharpest they’ve been in many years, which is a fact not lost on the many borrowers who have locked in.

Unlike variable rates, the major banks have been right in the mix in terms of competitiveness on fixed rates.

For example, at the moment the 4-year fixed term rates with CBA’s Fixed Rate Home Loan (Wealth Package) and NAB’s Tailored Home Loan (Fixed, Choice Package) are among the lowest in our database.

In fact, the big four average is currently below the average fixed rate in the Mozo database on 1, 2, 3 and 4-year terms.

Major banks vs Mozo database (average and lowest fixed rates) - July 1, 2021

1-year3-year5-year
Big four (average)2.16%2.18%2.78%
Mozo database (average)2.32%2.33%2.75%
Big four (lowest)2.04% (3.33% comparison rate*)2.04% (3.18% comparison rate*)2.49% (3.61% comparison rate*)
Mozo database (lowest)1.67% (3.84% comparison rate*)1.79% (3.33% comparison rate*)2.24% (2.33% comparison rate*)

Note: The fixed home rates in the table above come from loans tracked in the Mozo database. They are based on the following scenario: an owner occupier making principal and interest repayments on a $400,000 loan with an LVR <80%. 

As the table above demonstrates though, there are even lower fixed rate home loans on the market, so if you’re thinking about locking in a rate it may always be worth doing your research and comparing offers from different lenders.

RELATED: Interest rate hike will come sooner than expected, says CBA

Ready to see if you could save money by making the switch to a home loan with a lower interest rate?

Start comparing today by checking out the many loans and lenders featured in our handy refinance home loan tables, or get started right away by casting your eyes over some of the hot offers below!

Refinance home loans - 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

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

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.
    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 3 years
    2.27% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    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
    2.32% p.a.
    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.
    Go to site
    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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.