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.