commonwealth-bank-vs-westpac-which-home-loans-are-best

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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.15% p.a.
$2,434
Principal & Interest
Variable
$0
$0
80%
6.15% p.a.
6.28% p.a.
$2,437
Principal & Interest
Variable
$10
$300
60%
6.44% p.a.
6.76% p.a.
$2,618
Principal & Interest
Variable
$0
$0
70%
6.59% p.a.
6.59% p.a.
$2,552
Principal & Interest
Variable
$0
$160
70%
6.79% p.a.
6.87% p.a.
$2,605
Principal & Interest
Variable
$8
$0
70%
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 circumstances 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 circumstances.

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).

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.15% p.a.
$2,434
Principal & Interest
Variable
$0
$0
80%
6.15% p.a.
6.28% p.a.
$2,437
Principal & Interest
Variable
$10
$300
60%
6.44% p.a.
6.76% p.a.
$2,618
Principal & Interest
Variable
$0
$0
70%
6.59% p.a.
6.59% p.a.
$2,552
Principal & Interest
Variable
$0
$160
70%
6.79% p.a.
6.87% p.a.
$2,605
Principal & Interest
Variable
$8
$0
70%
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