The home loan interest rates offered by Australia's Big 4 banks are pivotal to the property market in Australia. We see A LOT of data and we can say the majority of people looking to refinance are currently with one of the big 4 - that is, CBA, NAB, ANZ and NAB.
These big banks have set the foundation of home loans in Australia and understanding their rates and looking at historical data can provide insights into the Australian home loan market, how they have responded and how it could impact your decision around going with them versus another bank or non-bank lender.
Current Interest Rates Comparison
As of April 2024, the Big 4 banks, (Commonwealth Bank, Westpac, ANZ, and NAB), have home loan interest rates that are fluctuating based on the Reserve Bank of Australia's cash rate decisions. As a quick snapshot, Commonwealth Bank offers rates starting from 6.74%, Westpac starts at 6.74%, ANZ at 6.74%, and NAB at 6.74%. It's crucial to compare additional features like offset accounts, redraw facilities, and fees.
Commonwealth Bank Home Loan Interest Rates
Commonwealth Bank offers a variety of home loan interest rates tailored for different customer needs.
Here is what their rates have looked like from January 1990 to April 2024:
| Month-Year | CBA Variable Rate (%) | CBA Fixed Rate (4-Year) (%) |
|---|---|---|
| Jan-1990 | 17.00 | 16.50 |
| Dec-1990 | 12.00 | 12.50 |
| Dec-1991 | 10.00 | 10.50 |
| Dec-1992 | 9.00 | 9.50 |
| Dec-1993 | 8.75 | 8.50 |
| Dec-1994 | 8.75 | 8.25 |
| Dec-1995 | 10.50 | 9.75 |
| Dec-1996 | 9.75 | 9.25 |
| Dec-1997 | 8.25 | 7.75 |
| Dec-1998 | 6.50 | 6.00 |
| Dec-1999 | 7.50 | 7.00 |
| Dec-2000 | 8.00 | 7.50 |
| Dec-2001 | 6.50 | 6.00 |
| Dec-2002 | 6.75 | 6.25 |
| Dec-2003 | 7.00 | 6.50 |
| Dec-2004 | 7.25 | 6.75 |
| Dec-2005 | 7.50 | 7.00 |
| Dec-2006 | 7.75 | 7.25 |
| Dec-2007 | 8.25 | 7.75 |
| Dec-2008 | 5.00 | 4.50 |
| Dec-2009 | 5.75 | 5.25 |
| Dec-2010 | Reserve Bank of Australia's cash rate strategy though. In addition, banks consider:
Also, in your own personal circumstance related to the interest rate, your credit score and financial history -may- also impact the rate offered by one of the big-4 (or any lender). Other factors that influence rates include economic conditions and bank polices. Let's have a quick look at those now… Economic ConditionsSo, economic conditions can play a major part in influencing the home loan interest rates offered by the Big 4 banks. In fact, over the last few years in the Australian economy we (as a nation) have seen major fluctuations in our economy. Examples of this include the changes we have seen in our GDP growth, as well as employment rates. And let's not forget and inflation, (as if we could), in fact many people say that inflation is the biggest pain point we are all feeling right now. All the above have played critical roles in shaping the home loan rates by the big 4. And lastly, international economic trends and global financial markets can impact the economy. This is not a factor or influence many people think about - however it can play a pretty big role in indirectly affecting the interest rates offered by both major banks (the big-4) and on a more broader scale, all lenders who offer home loans. It's always a good idea to keep an eye on the RBA cash rate and their meetings and what the key takeaways are. We are a quick and easily easily digestible snapshot of this every month for your on our RBA cash rate and update page, which we encourage you to review. Next we will look at bank polices. Bank PoliciesIt's no secret that the polices banks have also impact home loan interest rates. These polices can range from risk assessment, credit evaluation, and financial stability. These polices on their own -or- together can dictate how strictly a bank (like the big-4) assesses a your capability to repay the loan. Not to make it to complicated, but there are also policies on loan-to-value ratio and deposit requirements - which are also considered crucial in relation to the rates.NOTE: Although it helps to understand bank polices it's not necessary you need to know the ins-and-outs. That's up to your mortgage broker… as it's their job to get you the most competitive and well suited home loan for you. They dictate how strictly a bank assesses a borrower's capability to repay the loan, which in turn influences the interest rate offered. Furthermore, are crucial in determining rates. Tips for Choosing the Best home loan deal from one of the big 4When assessing home loan interest rates from the big 4 there are lots of things to consider. Firstly make sure you don't just confine yourself - compare rates from multiple lenders. And, this comparison should be done well beyond just a comparison site or what you see online. You really need to engage and speak with a broker. They will be able to present you options that are suited to your individual circumstances. Sometimes this is the big 4, other times it is not. The mortgage broker will work with you to get you the most competitive home loan deal they can get you - and sometimes that includes rates that are not even listed publicly (for example, not on any comparison site or the banks site). To learn more about the big-4 you can check out our the below pages that contain more information on them at an individual level:
Use Joust Live Auction and speak with a mortgage brokerJoust Live Auction allows you to quickly and easily see what competitive home loan products and deals you can access. It's free to use and there are no obligations. You'll be able to view all the different home loan products on the leaderboard and if you want to learn more about one and speak with a broker you are welcome to. Again, it's free and there are no obligations. Get started today and see what rates you can access on the leaderboard from the big-4 (and others). Note: The information in this article is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions. Sources for this article include:
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