CBA vs Westpac: which home loan suits you?
Last reviewed
CBA and Westpac are Australia's two largest home loan lenders by book size, and on paper their products look similar — offset variable loans, packaged fee-waiver bundles, broad branch networks. The differences that actually matter show up in how each assesses borrowing power, how aggressively each competes for refinancers at any given time, and how each treats slightly imperfect files.
| Attribute | CBA | Westpac |
|---|---|---|
| Rate positioning | Competitive headline rates, sharpest for owner-occupier P&I under 80% LVR; investor and interest-only loans priced with a wider gap. | Similar tiered structure; Westpac has at times run more aggressive refinance-only offers to win back share. |
| Offset & redraw | Full offset on packaged variable loans; redraw available on most variable products. | Full offset on packaged (Premier Advantage) variable loans; redraw broadly available, slightly more restriction on fixed. |
| Fees | Annual package fee waives or discounts other account fees; fee-free basic variable option exists. | Annual package fee structure is comparable; occasional fee-free promotional variable products. |
| Cashback / promotions | Runs periodic refinance cashback offers, usually time-limited and LVR-capped. | Also runs refinance cashback campaigns; timing and amounts move independently of CBA's. |
| Turnaround / service | Large in-house credit team; turnaround times are generally steady but can extend in high-volume periods. | Comparable scale; turnaround varies similarly with market volume and broker channel load. |
| Borrowing power quirks | Uses its own serviceability calculator and buffer; tends to be conservative on existing investment debt. | Separate calculator with its own treatment of living expense benchmarks and rental income shading. |
| Best suited to | Borrowers who want the largest branch/ATM footprint and are comfortable in a big, automated process. | Borrowers chasing a live refinance incentive, or already banking with Westpac group (St.George, BoM, BankSA). |
Where the real difference sits
Both are big four banks funded largely by deposits, both offer full-featured offset variable loans, and both credit-score applications through a largely automated engine. At this level, 'better' usually comes down to which one is running a sharper offer or a friendlier serviceability calculation for your specific income mix on the day you apply — not a structural advantage either bank holds permanently.
One genuinely useful difference: Westpac owns St.George, Bank of Melbourne and BankSA as separate brands with their own pricing and policy settings, which occasionally lets a broker find a better fit inside the same banking group when the flagship Westpac brand says no.
Serviceability and credit policy
- Both apply a serviceability buffer on top of the actual rate when assessing your ability to repay — the buffer size is set by each bank's own risk settings, not a single industry number.
- Existing debt (credit cards, BNPL, other mortgages) is assessed at the full limit, not the balance, by both — but the exact expense benchmark used underneath differs and can move borrowing power by tens of thousands.
- Neither bank does specialist or alt-doc lending; both want full income documentation. If your file has any complexity, this comparison isn't the right one — see our non-bank guides instead.
Who should pick which
If you already hold accounts, an offset or a package with one of the two, staying put and negotiating a rate review is often faster and cheaper than a full refinance — ask your broker to run the retention conversation first.
If you're refinancing fresh, the honest answer is 'whichever is running the better cashback and serviceability settings for your file this month' — which is exactly the kind of comparison a broker checks live rather than from a website table.
A note on pricing
Indicative only — check current pricing. Rates, fees and cashback offers change frequently and vary by loan purpose, LVR and lender promotion. Nothing on this page is a quote; speak to an XLOANS broker for live pricing from both lenders.
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Frequently asked questions
Indicative only — check current pricing. This page is general information, not financial advice, and does not quote live rates. Lender policy, pricing and cashback offers change frequently. Speak to an XLOANS broker for advice tailored to your situation.
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