Cash rate likely to remain on hold in June: cheapest Big Four banks fixed and variable offerings

With expectations strong that the RBA will leave the cash rate on hold tomorrow at 2.75%, the latest APRA banking figures provide a sobering reminder of just how the dominant the major banks are in the home loan market.

And how far behind the so-called “fifth banking pillar” is in reality.

The Commonwealth Bank is Australia’s biggest mortgage lender by some distance with an owner-occupier home loan book of $219 billion, followed by Westpac ($170 billion), NAB ($141 billion) and ANZ ($128 billion), the APRA April figures show.

The fifth biggest mortgage lender to owner-occupiers is ING Direct with a home loan book of $27.6 billion followed by the regional banks Suncorp ($24 billion), Bendigo & Adelaide Bank ($16 billion) and Bank of Queensland ($12.5 billion).

Collectively, these second-tier banks have a mortgage book of around $80 billion, still nearly $50 billion below that of the smallest of the big four banks, ANZ.

In investment housing lending, the top two reverse with Westpac leading the pack with a $125 billion mortgage book followed by the Commonwealth Bank ($98 billion), NAB ($53 billion) and ANZ ($49 billion).

Bank of Queensland is the fifth-biggest investment mortgage lender ($10.5 billion) followed by Suncorp ($9.8 billion), ING ($9.7 billion) and Bendigo and Adelaide Bank ($9.6 billion).

For borrowers considering taking out a home loan with one of the big four banks or refinancing into a big four bank home loan, these are their lowest advertised fixed and variable offerings:

Standard variable rates:

Provider

Rate

Comparison rate*

NAB

6.13%

6.22%

ANZ

6.13%

6.23%

Commonwealth

6.15%

6.29%

Westpac

6.26%

6.39%

Discount variable rate package offerings:

Provider

Loan name

Rate

Comparison rate*

NAB

NAB Choice Package with 85 basis point saving $500k+)

5.28%

5.66%

Commonwealth Bank

Wealth Package 80 basis point saving

5.35%

N/A

ANZ

Breakfree Home Loan Package with 70 basis point discount ($700k+)

5.43%

5.50%

Westpac

Premier Advantage Package with 70 basis point discount

5.56%

N/A

Lowest one-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

Westpac

Choice account and Premier Advantage package (limited time offer)

4.79%

5.87%

NAB

NAB Choice Package

5.09%

5.86%

ANZ

Breakfree Home Loan Package with 15 basis point discount

5.19%

5.66%

Commonwealth Bank

Wealth Package

5.19%

5.97%

Lowest three-year fixed-rate offerings

Provider

Loan name

Rate

Comparison rate*

ANZ

Breakfree Home Loan Package with 15 basis point discount

4.99%

5.39%

NAB

NAB Choice Package

5.09%

5.80%

Commonwealth Bank

Wealth Package

5.09%

5.86%

Westpac

Fixed with 20 basis points discount

5.29%

N/A

*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.

For information on refinancing, watch our free webinar The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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