Banking State of Origin

Written on the 19 June 2018

Banking State of Origin

Who is winning the Banking State of Origin when it comes to Home Loan Interest Rates Qld or NSW?

Which Lenders are providing better home loan rates to customers in New South Wales over customers in Queensland?

According to recent findings by a popular mortgage marketplace this is the case for some of Australia's biggest banks. An analysis of settlement data from March 2017 to April 2018 across several lenders found that lower interest rates were provided to customers in NSW than in Queensland.

The Lenders that were found to be offering the "least similar" rates across the two states were ANZ Bank, Commonwealth Bank, Bankwest and AMP.

ANZ's average interest rate over the analysis period was 3.98 per cent in NSW and 4.37* per cent in Queensland, making the largest difference of 39.57 basis points.

This means that on average, ANZ's customers in Queensland are paying nearly an additional $2,000 in mortgage repayments per year than their NSW counterparts.

Following ANZ was Bankwest, with an average interest rate of 3.99 per cent in NSW and 4.27 per cent in Queensland, while AMP's average rates were 3.82 per cent and 4.03 per cent in NSW and Queensland, respectively.

The Commonwealth Bank kept on this same trend by also offering lower interest rates to its customers in NSW (average of 3.87 per cent) than those in Queensland (average of 3.96 per cent).

So, Who Is Backing Queenslanders?


Our further research showed that there is some good news for Queenslanders. There are some Lenders out there that are willing to offer Queenslanders a better rate over their New South Wales counterparts.

ING, Macquarie and Suncorp were found to be providing the "most similar" rates, ranging around the 3 per cent mark, with Queensland customers getting the slightly lower rate by all these lenders.

ING's average interest rate was 3.83 per cent in NSW and 3.80 in Queensland; Macquarie's was 3.81 per cent in NSW and 3.79 in Queensland; and Suncorp's was 3.84 per cent in NSW and 3.76 per cent in Queensland.

National Australia Bank and Westpac were similar in offering a slightly lower rate to their Queensland customers. The former's average interest rate was 3.99 per cent in NSW, compared to 3.85 per cent in Queensland; and the latter was 3.94 per cent in NSW, compared to 3.86 per cent in Queensland.

Mandeep Sodhi, CEO of HashChing, noted that "The rates that banks offer customers who walk through the front door are typically a lot higher than what brokers are able to negotiate on their clients' behalf," the CEO said.

 

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