Big four banks vs smaller lenders: what RateSonar's rate data shows

What is being compared

Each figure is a lender's lowest standard variable owner-occupier principal and interest advertised rate on RateSonar's board as at 2 Nov 2026. One rate per lender, so a lender with many products counts once.

Some limits to keep in mind:

• Subsidiaries count as separate lenders. RateSonar lists brands such as St.George, Bank of Melbourne and BankSA separately from their big four owners. Here they sit in the "other lenders" group, because RateSonar lists them as lenders in their own right. Check who owns a brand before you read the group as independent.
• Advertised is not charged. Discounts, packages and negotiated rates can move what a customer actually pays. See the loyalty tax guide.
• Standard loans only. Investor, interest-only and fixed loans are not in these figures. For those, use the investor, interest-only and fixed boards.
• A snapshot. The board changes. The figures here are filled from RateSonar's data when this page is built, not typed by hand.

The big four, lender by lender

The big four's lowest advertised rates run across the range 6.34% to 6.79% as at 2 Nov 2026. Each name links to that lender's page on RateSonar: CBA, Westpac, NAB and ANZ.

Big four against the others

Reading the table:

• The gap between the two middles is 0.03 percentage points (big four minus other lenders; a negative figure means the big four are lower).
• On a $600,000 loan over 30 years, RateSonar's arithmetic puts that gap at $10 a month in repayments (big four middle minus other-lender middle, rate held constant; a negative figure means the big four are lower).
• Of the other lenders, 45 advertise a lowest rate below the big four's single lowest (6.34%), and 70 advertise at or above it.

A group middle describes the group, not any one lender in it. Within each group the range is wide, so a lender from either side can be the cheapest or the dearest for your loan size, LVR and features. The compare tool lets you line lenders up directly, and the home loan rate board shows each advertised rate with its date.

What the data does not measure

• Service and process. Turnaround, support, branches, app quality and how a lender handles problems are not in a rate.
• Approval odds. Lenders differ in credit policy, serviceability tests and which borrowers they want. See how lenders assess serviceability.
• Features. An offset account, redraw, fee waivers or a package can change the real cost. See how offset accounts work and package home loans and annual fees.
• Your own rate. A discount on offer to you may not appear on the board.

How lenders are regulated

Banks, building societies and credit unions are authorised deposit-taking institutions (ADIs) supervised by APRA, the Australian Prudential Regulation Authority. APRA's Financial Claims Scheme page says the scheme protects deposit-holders with Australian banks, building societies and credit unions. Moneysmart says it guarantees to pay up to $250,000 to replace deposits if an institution fails and covers APRA-regulated ADIs only (Moneysmart's term deposit page, updated 20 October 2026). That protects deposits, not home loans, and applies per person per institution, so confirm the detail with APRA.

Lenders that provide credit must also deal with complaints. Moneysmart says you should first contact the lender's internal dispute resolution team, and then the Australian Financial Complaints Authority (AFCA) for free, independent dispute resolution if you cannot agree. ASIC's guidance says a lender that refuses a hardship request must give AFCA's contact details. You can check whether a specific lender is an AFCA member on afca.org.au, and whether an institution is an ADI on APRA's register.

Being large, small, bank or non-bank does not by itself tell you which is safer or cheaper. It tells you which rules apply, so check the regulator's register for the lender in front of you.

Using this for your own loan

• Look up your current rate and compare it with both groups on the rate board. Rates also move over time; see the rate history and the latest changes.
• If your lender is above the market middle, ask for a lower rate before you switch: how to ask your bank for a lower rate.
• If you switch, count the costs first: the real cost of switching.