A brief introduction of home loan lenders in Australia

The home loan market in Australia is quite diverse, with a wide range of lenders offering different products and services. The two main types of lenders are:

1. Big Four Banks:

  • Commonwealth Bank of Australia (CBA)

  • National Australia Bank Limited (NAB)

  • Westpac Banking Corporation (WBC)

  • ​The Australia and New Zealand Banking Group Limited (ANZ)

These banks are the largest and most well-established lenders in Australia. They offer a wide range of home loan products, including fixed-rate, variable-rate, and interest-only loans. They also have a large branch network and offer a high level of customer service. However, they may have higher interest rates and stricter eligibility criteria than some other lenders.

2. Non-Bank Lenders:

These are lenders that are not banks. They include:

  • Building societies

  • Credit unions

  • Online lenders

Non-bank lenders can offer more competitive interest rates and more flexible eligibility criteria than the big four banks. However, they may have a smaller product range and fewer branches.
Here are some of the factors to consider when choosing a home loan lender:

  • Interest rate: This is the most important factor to consider. Be sure to compare the interest rates of different lenders before making a decision.

  • Fees: Lenders charge a variety of fees, such as application fees, valuation fees, and settlement fees. Be sure to factor in all of these fees when comparing lenders.

  • Eligibility criteria: Some lenders have stricter eligibility criteria than others. Be sure to check the eligibility criteria of each lender before applying for a loan.

  • Loan features: Some loans have features such as redraw facilities, offset accounts, and early repayment options. Be sure to consider the features that are important to you when choosing a loan.

  • Customer service: It is important to choose a lender that has a good reputation for customer service.

It is important to shop around and compare different lenders before making a decision. You can use a mortgage broker to help you compare lenders and find the best deal for you.