Variable	1 Year Fixed	2 Years Fixed	3 Years Fixed

Company	Product	Rate %	Go to Site
	Standard Variable	6.39
	SuperStar	6.47
	Premium Plus Pkg <$500k	6.49
	Budget Home Loan	6.52
	EasyStart	6.54

These variable rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Go to Site
	Great Rate HL 1-12m fxd	6.69
	1 year Fixed	6.74
	1 year Fixed	6.79
	1 Year Fixed	6.79
	Fixed ProPack1 1yr	6.79

These 1 Year fixed rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Go to Site
	2 Year Fixed	6.79
	2 year Fixed n Easy	6.95
	True 2 year Fixed	6.99
	Fixed ProPack1 2yr	6.99
	Great Rate HL 13-24m fxd	6.99

These 2 Years fixed rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Go to Site
	3 year Fixed	6.89
	3 year Fixed n Easy	6.97
	Classic 3 year Fixed	6.99
	Great Rate HL 25-36m fxd	6.99
	Fixed ProPack1 3yr	6.99

These 3 Years fixed rate home loans are ranked by interest rate on balance of $250,000.

5 Stars Mortgages - Variable Rate

Company	Product	Rate %	Go to Site
	Standard Variable	6.39
	Premium Plus Pkg <$500k	6.49
	Budget Home Loan	6.52
	Home Sweet Home Ln$250k+	6.75

These loans have low rates and offer things like redraw facilities and the ability to make additional repayments

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about home loans from multiple financial institutions. We will try to show you a range of products in response to your request for information. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a home loan, you will deal directly with a financial institution, and not with RateCity.

Should you stick with the big four?

The Big Four banks now control over 90% of Australian home loans but are you better off having a loan with one of the major banks or a smaller lender?

By Jackie Pearson
1 July 2009

They are the “four pillars” – Commonwealth, Westpac, ANZ and the National – sometimes credited with giving the Australian economy the strength that it has demonstrated over the past 18 months. At other times they’re “bashed” for their pack-like behaviour when setting interest rates and fees.

More recently they’ve also been busy gobbling up the competition: St George is now owned by Westpac, the Commonwealth has taken a strategic interest in Aussie Home Loans, Westpac acquired the RAMS Home Loans brand. The list goes on.

So are you better off having your mortgage with one of the major banks or are there still small competitors out there offering better deals? Here are some arguments for and against sticking with the Big Four.

Safety
The economic uncertainty of the past two years has certainly seen many consumers take refuge with familiar and well-established brands, including the biggest banks.

When the first wave of the financial crisis hit in 2007 the sources used by some non-bank lenders to fund their home loans dried up. The casualties were brands like RAMS and Wizard who found their business models were no longer viable and ended up in the hands of the big banks (Wizard was acquired by Aussie).

However, the government continues to assure us that all our banks are in good financial shape and the government’s deposit guarantee means that even the smallest credit union now has the same backing as the major banks.

Competitive Rates
The mutuals – credit unions, friendly societies and building societies – argue that they can offer more competitive rates than the bigger banks because their main source of funding is their deposit-making members. They don’t have to pay money market prices for the funds that they, in turn, lend to home buyers.

Currently only one of the major banks (NAB) makes it into the top 20 for cheapest variable-rate home loans. The other 19 lenders are credit unions, building societies, brokers and the few remaining mortgage originators. Westpac’s RAMS also makes it onto the list.

When it comes to one-year fixed rate mortgages only three out of the 20 lowest rates come from the major banks (ANZ and NAB).

Fees
The pattern between the Big four and smaller lenders is less evident when it comes to upfront and ongoing home loan fees. For example, the upfront cost of the 20 currently cheapest variable rate home loans ranges from $0 to $858 and NAB was one of the cheapest. Ongoing fees also range from $0 up to $396 per year and the NAB was one of the most expensive.

The Bottom Line
The bottom line is that it is always worth shopping around for the best home loan. Don’t feel any loyalty to a particular brand. Do your research and go for the best deal based on interest, fees and the features you prefer.

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