Commonwealth Bank (CBA) is Australia’s largest bank by basically any measurement, while Westpac (WBC) is Australia’s second-largest by many measurements. Both have more than $1 trillion in residents' assets on its books; they’re the only two banks in Australia to claim this feat, out of a cast of more than 100.
Westpac is Australia’s oldest bank, established as the Bank of New South Wales in 1817. CBA usurped Westpac’s reign as Australia’s largest bank when it became privatised in the 1990s. Now the two offer a wide array of home loan products, so which one should you go with?
Compare Westpac and Commonwealth Bank Home Loans
See how Westpac and CommBank compare with each other, and their major bank compatriots ANZ and NAB, in the table below.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.44%p.a. | 6.76%p.a. | $2,618 | Principal & Interest | Variable | $0 | $0 | 70% | |||||||||||
6.49%p.a. | 6.87%p.a. | $2,526 | Principal & Interest | Variable | $395 | $200 | 60% | Speak to a broker about this loan | ||||||||||
6.54%p.a. | 7.10%p.a. | $2,539 | Principal & Interest | Fixed | $0 | $160 | 80% | Speak to a broker about ANZ loans | ||||||||||
6.59%p.a. | 6.82%p.a. | $2,552 | Principal & Interest | Fixed | $8 | $0 | 70% |
Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)
- Immediate cashback upon settlement
- $2000 for loans up to $700,000
- $4000 for loans over $700,000
More details
Important Information and Comparison Rate Warning
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.
CBA and WBC Home Loans on Offer
Products | Westpac | Commonwealth Bank |
Owner-occupier home loan | ✔ | ✔ |
Investor home loan | ✔ | ✔ |
Fixed rate home loans | ✔ | ✔ |
Variable rate home loans | ✔ | ✔ |
Refinancing | ✔ | ✔ |
Packaged Home Loan | ✔ | ✔ |
Low doc home loan | X | ✔ |
Green home loans | ✔ | ✔ |
Construction loans | ✔ | ✔ |
95% LVR home loans | ✔ | ✔ |
Bridging loans | ✔ | ✔ |
Home loans with offset accounts | ✔ | ✔ |
Home loans with redraws | ✔ | ✔ |
Cashback offers | X | X |
SMSF Loans | X | X |
It’s tough to say in a black-and-white fashion which bank is better for a home loan because each borrower’s needs are different. Both tend to offer interest rates similar to one another that aren’t among the most competitive in-market.
In certain circ*mstances one may be better than the other, for example if you need a low-doc home loan Westpac doesn’t offer one, while CBA does in limited circ*mstances.
In the end it may also come down to home loan approval times; CBA claims as little as 60 minutes to put in an application to 4-7 business days for approval. Westpac did not respond to InfoChoice Group’s queries.
You might also prefer one’s app over the other, which is subjective, or you may already bank with one which could make it easier to get a home loan through them too.
The floor is yours.
Don’t forget the subsidiaries
Westpac and CommBank are such large banks they have either established other brands or acquired banks over the years, which enrich the financial landscape in Australia.
St. George, Bank of Melbourne, and BankSA: The three amigos of Westpac’s parenthood, these three banks tend to make home loan rate movements in tandem with one another.
Bankwest: Bankwest was acquired by CBA in the late-2000s, and the Perth-based bank offers a solid variety of home loan products.
Unloan: Unloan is a recent addition to CBA’s stable, offering a digital home loan experience with lower rates than many institutions. It’s a relatively streamlined affair, offering refinance-only home loans at 80% loan-to-value ratio (LVR).
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.44%p.a. | 6.76%p.a. | $2,618 | Principal & Interest | Variable | $0 | $0 | 70% | |||||||||||
6.49%p.a. | 6.87%p.a. | $2,526 | Principal & Interest | Variable | $395 | $200 | 60% | Speak to a broker about this loan | ||||||||||
6.54%p.a. | 7.10%p.a. | $2,539 | Principal & Interest | Fixed | $0 | $160 | 80% | Speak to a broker about ANZ loans | ||||||||||
6.59%p.a. | 6.82%p.a. | $2,552 | Principal & Interest | Fixed | $8 | $0 | 70% |
Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)
- Immediate cashback upon settlement
- $2000 for loans up to $700,000
- $4000 for loans over $700,000
More details
Important Information and Comparison Rate Warning
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.
Images via Westpac and Commonwealth Bank websites, designed on Canva
Read more:Big 4Home Loan Basics
Harrison Astbury
Editor and Financial Analyst
Harrison is InfoChoice's editor and market commentator. With years of experience at some of Australia's largest comparison sites and media organisations, Harrison is passionate about all things banking.
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