“With a rate of 2.14%, Unloan is not the cheapest in the market but considering roughly 73% of owner-occupier borrowers bank with the big four, when compared to the average cheapest rate of the major banks of 2.37%, it’s a difference of 0.23 percentage points.” “For those fixed loan customers facing an increase in repayments, this new digital home loan offering presents a great opportunity for the bank to keep its customers within the group,” she said. A new option for customers coming off fixed rate home loansĬanstar finance expert, Effie Zahos, said CommBank has chosen an auspicious time to launch the product to the market, especially in light of the fact that around $19 billion worth of its fixed rate home loans are due to roll off fixed rates in June and face potential rate rises. The bank promises that Unloan will “strip away” many of the complexities seen in more traditional lending options, with a digital customer experience that allows applications to be completed in as little as 10 minutes.Īccording to Unloan, its home loans can only be managed via the Unloan website and not available in the CommBank app, branches or call centres. In the coming months, CBA plans to expand Unloan into new home loans, and also enable Open Banking-powered assessments for an even faster application experience. When can you sign up for Unloan?ĬommBank has said that from today,, Unloan is accepting applications to refinance home loans up to $3 million, with a loan-to-value ratio (LVR) of up to 80% of the property’s value. comparison rate) and the same loyalty discount that grows by 0.01 percentage points every year, up to 30 years. As a hypothetical example, CommBank’s website for Unloan says if a borrower took out this loan today the rate would fall to 2.04% (2.06% comparison rate) after 10 years (though this assumes interest rates remain unchanged throughout this time, which the major bank notes is unlikely).įor investors, Unloan also offers one variable rate of 2.44% p.a. comparison rate), with a loyalty discount that grows by 0.01 percentage points every year, up to 30 years. What’s the interest rate on the Unloan home loan?Īnnouncing the new home loan product today, CommBank said Unloan offers owner-occupiers one variable rate, priced at 2.14% p.a. It is currently available for refinance home loans, and CommBank plans to make it available for new homebuyers in months to come. When announcing the release of the new product, CommBank said that Unloan will offer customers a discount that increases every year for up to 30 years. Touted as “a new kind of home loan”, Unloan is unique in the way it rewards customers for their loyalty.

Unloan is a new, digital-only home loan from Commonwealth Bank. While it’s not the first lender to offer digital-only home loans in Australia – providers including Nano and Tic:Toc already have digital-only products available for borrowers – CommBank says Unloan will be a first of its kind for a digital home loan, due to the gradually increasing loyalty discount on offer to customers who remain on the product over time. Commonwealth Bank has today launched a new digital-only home loan product, Unloan, which the major bank says customers can apply for in as little as 10 minutes.

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