The Digi Home Loan boasts CommBank's lowest advertised home loan rate, with interest rates starting at 6.15% p.a.
The big four bank, which commands nearly 25% of Australia's mortgage market, is among the last to enter the digital-only space.
Westpac and ANZ launched their respective digital offers in 2022.
"We developed the Digi Home Loan as we know there is a growing number of customers seeking a self-managed, digital home lending experience," CommBank executive general manager of home buying Dr Michael Baumann said.
"Driving innovation for our customers - including the delivery of distinct and differentiated customer experiences - is core to CBA's strategy."
CommBank's online-only home loan product is exclusively available on the CommBank app and via Netbank and promises pre-approval within minutes.
Those turning to the mortgage product could also receive $10 cashback - effectively negating the home loan's $10 monthly fee - if they're eligible for Homeowner benefits as part of the bank's Yello loyalty program.
Though, they won't be able to make use of an offset account or receive in-person or over-the-phone support when submitting their application.
CommBank Digi Home Loan interest rates
The table below lists the interest rates on offer to owner-occupiers applying for the bank's digital only home loan (with discount margin offer) at the time of writing:
|
LVR |
Interest rate (% p.a.) |
Comparison rate* (% p.a.) |
|---|---|---|
|
≤60% |
6.15% |
6.28% |
|
60.01-70% |
6.17% |
6.30% |
|
70.01-80% |
6.19% |
6.32% |
Meanwhile, these rates are on the table for property investors:
|
LVR |
Interest rate (% p.a.) |
Comparison rate* (% p.a.) |
|---|---|---|
|
≤60% |
6.34% |
6.47% |
|
60.01-70% |
6.36% |
6.49% |
|
70.01-80% |
6.46% |
6.59% |
The Digi Home Loan doesn't allow a borrower to fix their interest rate, but they can switch to a different product (a Standard Variable Rate or Fixed Rate Home Loan) if they wish.
It also offers an interest rate higher than many others on the market right now, with numerous other Australian lenders now advertising variable home loan rates under 6.00% p.a.
Am I eligible for CommBank's Digi Home Loan?
If you're already a CommBank customer and find yourself enticed by the interest rates and features of the Digi Home Loan, the bank has bad news for you.
The Digi Home Loan is currently only available to external refinancers.
That means only people who already have a home loan with a different bank can gain access to the new mortgage product.
On top of that, those with less than 20% equity won't be eligible for the new digital home loan.
The highest loan-to-value ratio allowed under the Digi Home Loan is 80% while its minimum loan amount is $100,000.
CommBank's digital home loan cuts mortgage brokers from the equation
Notably missing from the Digi Home Loan equation are mortgage brokers.
The new product might offer the lowest advertised rate of any CommBank home loan, but borrowers can only access it via the bank's own channels.
This might have caused unrest among mortgage brokers, as the nation's largest lender appears to be leaning away from the channel of origination.
In the six months to December 2023, nearly half of CommBank home loans were originated by brokers.
How does the Digi Home Loan compare to CommBank's existing Unloan?
If news of a digital-only home loan from CommBank sounds like deja vu, it might be because the bank launched digital-only home loan brand Unloan in 2022.
Originally, Unloan was only open to refinancers, with homebuyers only brought into the fold earlier this year.
Whether a similar growth trajectory is realised by the Digi Home Loan is yet to be seen.
Unloan is built and backed by the big four bank, but the brands are notably different in two ways.
Firstly, Unloan offers lower rates than its parent company's digital offering.
It advertises interest rates as low as 5.99% p.a. and promises a loyalty discount of 0.01% p.a. for each year a person sticks with the lender.
Secondly, Unloan's home loan offering stands by itself, whereas CommBank's digital mortgage is part of a vast suite of potential products.
A person taking out a Digi Home Loan can presumably manage it in the same space they can manage their transaction account, savings account, term deposit, or credit card.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
Image courtesy of Commonwealth Bank of Australia
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