The lowest rates from the biggest banks

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Ever wondered which of the high-profile banks offers the cheapest home loan?

You might be surprised to learn that it’s not a member of Australia’s ‘big four’ banks – Westpac, Commonwealth Bank, NAB and ANZ.

Instead, it’s one of the ‘other big four’ banks – HSBC, ING, Macquarie and Citibank.

The winner, it turns out, is HSBC, which is one of the world’s biggest banks.

HSBC’s Home Value Home Loan is currently priced at 3.65 per cent, making it the price leader out of those eight well-known banks (see tables below).

By the way, this comparison assumes you’re an owner-occupier paying principal and interest.

Variable rates – the big four

Bank Interest rate
Westpac 3.75%
Commonwealth Bank 3.89%
NAB 4.17%
ANZ 4.30%
Big four average 4.03%

Variable rates – the other big four

Bank Interest rate
HSBC 3.65%
ING 3.69%
Macquarie 3.69%
Citibank 4.26%
Other big four average 3.82%

Let’s do some number-crunching. Imagine you took out a $350,000 loan over 30 years. And imagine that your two options were HSBC’s Home Value Home Loan and the average big four loan.

Here’s how your repayments would look under those two scenarios:

Monthly repayments Total repayments
HSBC (3.65%) $1,601 $576,399
Big four average (4.03%) $1,677 $603,725
Difference $76 $27,326

It’s important to note that interest rate isn’t the only thing to consider when you take out a home loan.

You should also weigh up a range of other factors including fees, features, repayment rules and customer service.

That said, the numbers clearly show that HSBC is currently undercutting ANZ, Commonwealth Bank, NAB and Westpac.

So if you’re in the market for a home loan, you might want to broaden your search by including not just the traditional big four banks but also the other big four.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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