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Short answer: the best Australian mortgage shortlist

If you’re in Australia, I’d shortlist Macquarie, ING, Unloan, Up, CBA/CommBank, Westpac, NAB, ANZ/Suncorp, Bendigo Bank, and a couple of customer-owned or online lenders like People First Bank, Greater Bank/Newcastle Permanent, loans.com.au, Homestar, Tiimely Home or Pacific Mortgage Group.

But I’d split them into two buckets:

1. Lenders people actually use at scale: CBA, Westpac, NAB, ANZ/Suncorp, Macquarie, ING.
2. Lenders often sharper on price/features: Unloan, Up, Macquarie, ING, loans.com.au, Homestar, Tiimely, customer-owned banks.

Australia’s mortgage market is still dominated by the Big Four: CBA, Westpac, NAB and ANZ hold roughly 72% of owner-occupier housing loan value and 76% of investor housing loan value, while CBA alone is around a quarter of the market. Macquarie has been the standout challenger, growing quickly and now sitting as the clear “fifth force” in home lending. (savvy.com.au)

My practical top picks

If you want the “best product” by borrower type

• Best simple low-fee digital loan: Unloan Variable Home Loan — especially for owner-occupiers or investors with ≤80% LVR who don’t need offset. (unloan.com.au)
• Best app-first offset-style loan: Up Home Variable Rate — particularly attractive for first-home buyers and people who actively use offsets/savers. (finder.com.au)
• Best all-round challenger bank: Macquarie Offset Home Loan or Basic Home Loan — good mix of scale, digital capability, broker access and product flexibility. (macquarie.com.au)
• Best customer-satisfaction major-ish lender: ING Mortgage Simplifier / Orange Advantage — strong customer satisfaction and straightforward products. (roymorgan.com)
• Best big-bank convenience: CBA Standard Variable/Digi Home Loan with Everyday Offset, or Westpac Flexi First/Rocket Repay — not always the cheapest, but widely used and easy to service. (commbank.com.au)
• Best customer-owned/service-led option: People First Bank, Bendigo Bank, Greater Bank/Newcastle Permanent, Bank Australia, Teachers Mutual — compare rates and eligibility case-by-case. (canstar.com.au)

What I’d actually do in Australia

I’d get quotes from at least one Big Four bank, Macquarie, ING, Unloan or Up, and one customer-owned bank. Then I’d run them through a broker or comparison process, because brokers now write 81.6% of new residential home loans in Australia as of the June 2026 quarter. That doesn’t mean every broker will show every lender, so ask directly: “Which lenders on your panel are not being included, and why?” (mfaa.com.au)

My ranked shortlist

1. Macquarie — best all-rounder.
2. ING — best for customer satisfaction.
3. Unloan — best low-fee simple digital variable loan.
4. Up — best app-first/offset-style loan, especially first-home buyers.
5. CBA — best big-bank convenience and scale.
6. Westpac — strong big-bank competitor, especially basic variable/offset options.
7. NAB — worth comparing among the Big Four.
8. Suncorp / ANZ — useful if policy fit or broker pricing is strong.
9. Bendigo Bank — good relationship/customer-satisfaction option.
10. People First / Greater Bank / Newcastle Permanent / loans.com.au / Homestar / Tiimely — compare if you’re rate-sensitive and comfortable with smaller or online lenders.

Bottom line: for most Australians, I’d start with Macquarie, ING, Unloan and Up, then use CBA/Westpac/NAB/ANZ as big-bank benchmarks. Don’t pick on brand alone — compare the comparison rate, offset/redraw, annual fees, cashback, LVR tier, package fees, discharge fees, and whether the lender will actually approve your property and income type.

If you are looking for a home loan in Australia, the mortgage market has shifted dramatically. With the Reserve Bank of Australia (RBA) cash rate sitting at 4.35%, average variable interest rates hover around 6.9%, though highly competitive lenders offer rates starting in the high 5% range.

Crucially, over 80% of Australians now use a mortgage broker rather than going directly to a bank. This is largely to combat the "loyalty tax"—where banks charge existing customers up to 0.50% more than new customers.

Because "the best" lender depends entirely on your financial situation and how you want to manage your loan, the top brands and products Australians actually use are broken down by category below.

1. The Broker & Consumer Darling: Macquarie Bank

If you ask mortgage brokers or finance-savvy Aussies who they recommend most, Macquarie Bank is almost always at the top of the list. While it is technically a major bank, it behaves like a nimble tech company.

• The Standout Product: Macquarie Offset Home Loan Active (or Basic Variable).
• Why people use it:
  • Unmatched Turnaround Times: Macquarie is famous for approving loans in days (and sometimes hours), whereas major banks can take weeks.
  • Brilliant Digital Experience: Their banking app is widely considered the best in Australia for managing offset accounts.
  • Competitive Packaging: You can link up to 10 fee-free offset accounts to a single loan, which is fantastic for budgeting.
• Best for: Borrowers who want a premium, fully featured offset home loan with highly competitive rates and top-tier technology.

2. The Direct-to-Consumer Digital Giants

If you have a straightforward PAYG income, a healthy deposit (typically 20%+), and don't want to use a broker, digital-first lenders offer some of the absolute lowest rates on the market.

• Unloan (Backed by CBA)
  • The Standout Product: Unloan Variable Home Loan.
  • Why people use it: Unloan is a digital-only lender owned by Commonwealth Bank, giving you the security of Australia’s biggest bank but with much lower rates. It has a unique Loyalty Discount—your rate is cut by an additional 0.01% p.a. every year you hold the loan (up to a 0.30% discount). There are also zero application or ongoing fees.
  • The Catch: It does not offer a traditional offset account (only a redraw facility), and they don't do construction loans or partner with mortgage brokers.
• Athena Home Loans
  • The Standout Product: Athena Straight Up Variable.
  • Why people use it: Athena is famous for its "no loyalty tax" policy—if they drop rates for new customers, existing customers get the drop automatically. They also feature "AcceleRATES," meaning as you pay down your loan and your Loan-to-Value Ratio (LVR) drops, your interest rate automatically decreases.
  • The Catch: Like Unloan, they are direct-only (brokers can't write them) and they have strict lending criteria (mainly targeting refinancers with low LVRs).
• loans.com.au
  • The Standout Product: Smart Home Loan (Basic or Offset).
  • Why people use it: A pioneer of online-only lending in Australia. They consistently win Canstar and Mozo value awards because they keep their margins razor-thin, giving you major-bank-style offset features at non-bank pricing.

3. The "Big Four" Banks (CBA, Westpac, NAB, ANZ)

Despite the rise of digital lenders, the Big Four still hold the majority of the Australian mortgage market. People generally don't use them for the lowest rates, but they are highly popular for specific needs.

• Why people use them:
  • Complex Loans: If you are self-employed, have multiple income streams, or are looking to build a home (construction loan), the Big Four have much more flexible credit policies than digital lenders.
  • First Home Buyer Schemes: They actively participate in federal and state first-home buyer guarantee schemes.
  • Branch Access & "Digi" Products: CBA has launched its own direct-online product called the Digi Home Loan to compete with fintechs, offering a sharper rate than their standard package. Westpac’s Flexi First Option is also highly popular as a competitive "no-frills" major bank option.

4. Mid-Tier & Customer-Owned Banks

These are the institutions that sit between the online-only fintechs and the corporate giants. They frequently win "best value" awards because they don't have to answer to public shareholders.

• ING: Incredibly popular with younger buyers. Their Orange Everyday banking suite integrates beautifully with their competitive home loans, and they frequently run highly rated offset and redraw products.
• ubank (backed by NAB): ubank operates as a digital bank. They offer a seamless app-based application process, very competitive variable rates, and no ongoing fees.
• Great Southern Bank & Beyond Bank: Customer-owned mutual banks that are heavily focused on customer service, low fees, and supporting first-time buyers with competitive LMI (Lenders Mortgage Insurance) waivers.

How to decide what's best for you:

1. If you want the absolute lowest rate and have a clean application: Go with a digital lender like Unloan or Athena. Just note that you will have to handle the application yourself.
2. If you want a great rate, an offset account, and broker support: Ask your broker to look at Macquarie or ING.
3. If you have a complex financial situation (e.g., self-employed): You will likely need a major bank like NAB or CBA.
4. If you already have a mortgage: Check your current rate. If it starts with a 6 or higher, call your bank and ask them to match a competitor's rate, or contact a broker to refinance. Refinancing can easily save you $2,000+ a year in the current market.

In Australia, people usually call them home loans, and the “best” lender really depends on whether you want a cheap rate, a branch, good offset flexibility, or an easy online refinance.

Here are the lenders Australians actually use most, broken down by what they’re good at.

The Big 4 banks

If you want security, branches, and packaged products, these are the top choices:

• Commonwealth Bank (CBA) – Australia’s biggest home lender by far. People use it for the rock-solid app, branch network, and if they already bank with CommBank. Rates are usually not the cheapest, but it’s the most popular.
• Westpac – Another big player. Popular for flexible packages, including good offset accounts and the ability to split loans. Often has refinance cashback offers.
• NAB – Known for being a bit more aggressive on pricing than CBA/Westpac, especially for refinancers. Also has a simple online application and broker channel.
• ANZ – Similar to the others. People use it if they want straightforward banking, and ANZ often runs fixed-rate specials or cashback deals.

If you want a big lender but with slightly better rates, consider their subsidiaries:

• Bankwest (owned by CBA) – Often has lower rates than CBA with similar backing.
• St George / BankSA / BOM (owned by Westpac) – Popular for sharper rates and decent service.

Other trusted mainstream lenders

• Macquarie Bank – Huge in Australia, particularly for refinancers and property investors. People consistently rate it highly for customer service and its digital app. Rates are competitive and it offers excellent offset accounts.
• ING – Australians know ING for everyday banking, but it also offers competitive home loans. No bank branches, but a very good online experience and low rates.
• ubank – Online retail bank owned by NAB. Gaining popularity for cheap variable rates with no ongoing fees. Good if you’re happy to manage everything digitally.

Best for low-cost online loans

If you don’t need a branch and just want a low rate, these are heavily used by refinancers:

• Athena Homeloans – Pure online, no branches, no ongoing fees. Designed to automatically reduce your rate as you pay down the loan. Very popular for refinancing.
• loans.com.au – One of Australia’s most established online non-bank lenders. Often has some of the lowest advertised rates.
• Reduce Home Loans – Also competitive but service can be more basic.

"Actually use" vs "best" reality

According to market share, the majority of Australian home loans are still with the Big 4 — especially CBA and Westpac. But many of the best customer satisfaction ratings go to Macquarie and Athena, and the sharpest rates often come from online/non-bank lenders.

My recommendation for most Australians:

• You want a branch + bank with everything → CBA or Westpac
• You want low rate + top service + no branches → Macquarie or Athena
• You want a reliable, competitive online option backed by a big bank → ubank or ING
• You’re refinancing for cashback → check current offers from NAB, Westpac, ANZ and St George

Always look at the comparison rate, the ongoing fees, and whether the loan has a 100% offset account if you want one. The best move for most people is to talk to a good mortgage broker — this is Australia, and brokers are free to use for most borrowers.