Australia has a wide range of home loan lenders, and the right one depends on your situation rather than a league table. This overview explains the main types of lenders and the features worth comparing.
For independent guidance, Moneysmart has a useful guide to choosing a home loan.
Types of home loan lenders in Australia
Home loans in Australia are offered by three broad groups of lenders:
- Major banks
- Regional and customer-owned banks
- Non-bank lenders
All of them must hold an Australian Credit Licence and follow responsible lending laws. The main differences are how they are funded, how they are regulated and the kinds of borrowers their policies suit.
Major banks
The four major banks are ANZ, Commonwealth Bank, NAB and Westpac. They take deposits, are regulated by APRA as authorised deposit-taking institutions, and offer a full range of home loan types alongside everyday banking, branch networks and banking apps.
Regional and customer-owned banks
Regional banks, and customer-owned banks such as mutual banks, credit unions and building societies, also take deposits and are regulated by APRA. Customer-owned banks are owned by their members rather than by shareholders. Many offer a similar range of home loans and features to the major banks, and some focus on particular regions or communities.
Non-bank lenders
Non-bank lenders don't take deposits. They fund their loans in other ways, such as through wholesale funding. Some specialise in particular borrowers, for example self-employed people, borrowers with complex income or those rebuilding their credit history.
Because they don't hold deposits, some non-bank lenders can't offer a separate offset account. If an offset or redraw feature matters to you, check how it works before you apply.
Features to compare
When you compare home loans, look beyond the advertised rate:
- Interest rate and comparison rate: The comparison rate includes most fees and charges, which gives a better picture of the overall cost of a loan
- Fees: Application fees, ongoing or package fees, and discharge fees
- Rate type: Variable, fixed or split rates, and what happens when a fixed period ends
- Offset and redraw: Whether the loan has an offset account or redraw facility, and any conditions
- Repayment options: Extra repayments, repayment frequency and interest-only options for property investors
- Deposit requirements: Some lenders accept smaller deposits for low-deposit borrowers, usually with lenders mortgage insurance unless you qualify for a government scheme
- Lending policy: How the lender assesses your income, the property type and options such as guarantor loans
- Specialist loans: Not every lender offers products such as SMSF lending
- Service: How you apply, how you contact the lender and the support available after settlement
How to choose the right lender for your situation
Finding the right lender isn't just about who has the lowest advertised rate. Consider:
- Your borrower profile: Lenders assess first home buyers, investors and self-employed borrowers in different ways. Some lenders assess this more flexibly than others; we can identify which.
- Property type: Some lenders restrict lending for apartments, rural properties or non-standard construction
- Loan features needed: Offset accounts, redraw facilities and fixed-rate options vary between lenders
- Future plans: Will you need flexibility for renovations, additional properties, refinancing or family changes?
- Service preferences: Do you value digital convenience, branch access or relationship banking?
Why use a mortgage broker instead of going direct
You can apply directly with a lender or use a broker. As a broker, we can:
- Compare loans from more than 40 lenders on our panel
- Match your situation to lenders whose policies suit it
- Handle the paperwork and follow-up with the lender
- Negotiate on your behalf
- There is no fee to you for our service; we are paid by the lender
Next steps
Ready to compare your options? Book a free, no-obligation consultation with our team. We'll look at your situation and compare loans from the more than 40 lenders on our panel.
Last reviewed: September 2026.
