The Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) can boast to having the lowest comparison rate among the big banks.

While all the majors moved to pass on the full 25 basis point increase from the Reserve Bank, there still remains a narrow spread of 0.07 per cent between the comparison rates on the major’s standard variable rates.

CBA and NAB are tied at the lowest, boasting a 6.12 per cent comparison rate followed closely by ANZ at 6.16 per cent and Westpac at 6.19 per cent.

With conditions continuing to improve, the RBA is widely expected to push the official cash rate higher in the coming months, which would push comparison rates higher. The banks are also tipped to move interest rates independent of the RBA in response to higher funding costs.

The gap between the majors seems to be narrowing, with the last contrast conducted by industry publication Mortgage Business in February this year, revealing a 0.19 per cent spread between the majors’ comparison rate’s on variable rate products.

At that time CBA delivered the lowest home loan comparison rate at 5.86 per cent, while ST George offered the highest at 6.05 per cent.
Source: Mortgage Business