A home loan is a loan that a person borrows in order to purchase a house, renovate and maintain an existing one or reselling it. The house acts as security to the lender and can be sold in case the borrower is not in a position to pay the loan. Banks which offer home loans in Australia have been certified by the law to offer banking services and financial help to the public. In this article, we will discuss Australia’s biggest lenders who have maintained their positions over the years. According to the statistics released by APRA, these lending institutions have dominated the mortgage industry and have retained their ranks respectively. These institutions enrich clients with a wide range of services such as personal banking and wealth management services.
The Biggest Lenders in Australia
The 10 biggest lenders in Australia are as discussed below.
1. Commonwealth bank
Commonwealth bank is multinational bank offering a wide range of financial options which include home loans and personal loans among others. It is one of the biggest lenders in Australia among the top four. It is located in Sydney with more than 4300 ATMs and 1100 branches countrywide. It has fixed rate home loans and an exclusive home loan plan, which gives first time buyers discounts and an introductory interest rate throughout the reimbursement period.
CBA has offered their loans as follows:
Overall mortgage lending: $2,365 billion
Residential mortgage: $1,564 billion
House financing: $801 billion
Total shares: 25.9%
2. Westpac banking agency
Westpac bank was founded in 1817 and it is one of the oldest financial institutions in Australia. It was formerly known as Bank of South Wales which was later renamed in 1982. It offers investment and wealth management services with 1204 branches countrywide. It also offers other services such as: retail banking and mortgage loans for aspiring home owners. Westpac’s mortgage loans have minimal rates of 6 months for renovations. The rocket repay plan enables borrowers to make payments with no extra costs.
Westpac has offered loans as follows:
Overall lending: $2,050 billion
Residential mortgages: $1,164 billion
House financing: $886 billion
Overall shares: 22.5%
3. Australia and New Zealand bank
The ANZ bank is based in Melbourne and is the third largest banks in Australia. ANZ offers services such as investment services, wealth regulation and personal banking plan which is its main service. It helps borrowers connect with financial advisers and professionals who help them through the mortgage process. It offers borrowers with lower rates and they can go through a seller’s profile before purchasing homes., with help of an online loan calculator.
ANZ has offered loans as follows:
Overall lending: $1,314 billion
Residential mortgage: $877 billion
House financing: $437 billion
Overall shares: 14.4%
4. National Australian bank
The national Australian bank is best known for offering the Defense Home Ownership Assistance Scheme (DHOAS). This plan offers professional loan advice and home loans at affordable and lower rates to the Defense Forces. Their online space allows borrowers to perform a variety of actions such as: calculate reimbursements, select a favorable loan and calculating their home equity. It has 1590 branches nationwide serving customers in New Zealand and Asia as well as Australians. NAB being the last of the top four banks, its services are similar to the other three.
NAB has offers loans as follows:
Overall lending: $1,313 billion
Residential mortgage: $810 billion
House financing: $ 503 billion
Overall shares: 14.4%
5. Macquarie bank
Macquarie bank limited is located in Sydney serving customers worldwide. Its services include: investment financing, forex and money market trading and residential mortgage financing. It has both fixed and variable rate home loans which the calculator and help you decide on. Macquarie allows you to separate your loan interests and saving in different accounts. You can create up to 10 accounts, where you can make regular reimbursements to repay your loan faster.
Macquarie has offered their loans as follows:
Overall lending: $315 billion
Residential mortgage: $183 billion
House financing: %131 billion
Overall rate: 3.5%
6. ING bank
ING is an intercontinental bank that specializes in direct savings and located in Australia. Its services include: insurance services, mortgage loans and collective banking services. ING has a special feature known as Mortgage Simplifier which allows clients to make extra reimbursements for free. Their online calculators enable you to seek professional financial advice from their website.
ING bank has offered its loans as follows:
Overall lending: $258 billion
Residential mortgage: $217 billion
House financing: $41 billion
Overall shares: 2.8%
7. Bendigo and Adelaide bank
Bendigo bank was founded in 1858 and is one of the oldest banks that offers retail services. It introduced debit and credit cards in 1980 and remains the first institution to introduce these services. It has 400 branches countrywide after joining forces with Adelaide bank in 2007. Its services include: personal savings, insurance, mortgages and credit and debit cards. This bank has a special program known as Bendigo Express which uses Artificial Intelligence that enables faster mortgage loan processing.
Bendigo and Adelaide bank has offered its loans as follows:
Overall lending: $248 billion
Residential mortgage: $170 billion
House financing: $77.5 billion
Overall shares: 2.7%
8. Suncorp -Met way bank
The Suncorp- Met way bank is located in Brisbane and emerges top amongst the lenders who render general insurance. It offers banking and wealth administration services. This bank has a special program known as Deposit Kickstart that enables a borrower to use a warranter’s equity in order to be eligible for the loan. Suncorp- Met way bank also provides you with expert financial advice in case you are unsure about their options. They have online calculators too help you compute and compare different home loans. The application process takes approximately 10 minutes and the lender will call back within the next working day.
Suncorp- Met way bank has offered its loans as follows:
Overall lending: $211 billion
Residential mortgage: $151 billion
House financing: $60 billion
Overall market: 2.3%
9. Bank of Queensland
The bank of Queensland is located in Brisbane and particularize in banking and insurance services for small and medium businesses. It has 160 branches countrywide which offer retail services. This bank several loan options for home owners and investors such as variable and fixed rate home loans and line of credit loans. It also allows extra reimbursements and free redraws on home loans.
Bank of Queensland has offered its loans as follows:
Overall lending: $148 billion
Residential mortgage: $90 billion
House financing: $58 billion
Overall shares: 1.2%
10. HSBC bank
HSBC bank is the largest external monetary institution in Australia which was founded in 1985 and is located in Sydney. Its services include: personal banking, trade financing and wealth management. It offers low interest rates on home loans and use online calculators to contrast different lenders. It has a special program known as Home Value Loan Program the enables borrowers to make extra reimbursements excluding service fees. choosing a variable rate loan gets you a professional t take you through the borrowing process.
HSBC bank has offered their loan as follows:
Overall lending: $112 billion
Residential mortgage: $80 billion
House financing: $32 billion
Overall shares: 1.2%
Conclusion
Australia has one of the most aggressive lending programs in the market with an estimated number of 97 financial institutions. It is advisable to compare rates from different financial institutions before making a decision. Applying online can help you evade transaction fees and waiting in line. Choosing a reliable bank is a very crucial decision for a home buyer.
FAQs
1. Is it possible to get a first home loan from the National Australian Bank?
Yes. It is very possible to get a loan on your fist home via NAB, because they have a special program known as First Home Loan Deposit Scheme that enables a first-time home buyer to purchase a home by minimizing the upfront charges. However, this loan is specially for home buyers who want to purchase new houses.
2. Is it possible to apply for a personal loan if I have an existing home loan?
If you meet the eligibility criteria then yes, you can apply for a personal loan. The requirements may include: consistent flow of income, an excellent credit history and some savings. You should be able to show financial discipline and prove that you are capable of repaying the two loans without trouble.
3. What duration does Westpac bank take before approving a loan?
Loans from Westpac may vary from one client to another, however, after commencing your application you can request a callback from Westpac representatives within 24 hours. If you have all the required documentations and after assessment by the representative, you will receive an AIP in 2 working days, whose validity is 90 days. After finding a suitable home and a contract of sale, the loan initiation process starts taking 4-12 weeks.
4. How long does a bank keep mortgage details?
Banks and other financial institutions can maintain details for a maximum of 7 years after successful loan application and approval.
5. How much deposit is needed to get a home loan?
The minimum amount required to get a home loan is 5%of your properties’ value, though this may differ from one lender to the other. Taking time to gather a larger deposit may be tiresome, but it will make you borrow and the lesser the repayments will be.