The new rate of 5.84% p.a. (5.97% p.a. comparison rate*) is a six basis point drop on the old rate but is only available to new customers with a loan-to-value ratio (LVR) of 60% or less.
The owner occupier rate now matches the basic variable refinance rate of Westpac's new Flexi First Option digital-only home loan product (5.85% p.a. comparison rate*), available to borrowers with LVRs under 70%.
And it's likely no coincidence it's the same rate as ANZ Plus's online-only refinance rate of 5.84% p.a. (5.85% p.a. comparison rate*).
That one could come with a $2,000 cashback for eligible refinancers.
As well, like CommBank, ANZ Plus will also thrown in an offset account for an additional $10 a month.
But wait, there's more.
NAB's online entity Ubank is also offering - you guessed it - 5.84% p.a. (5.86% p.a. comparison rate*) to owner occupiers with 60% LVR.
See all this week's latest rate movements: Lenders race to drop fixed rates as RBA cut looms
See also: ANZ slashes fixed home loan rates
What is CommBank up to?
However, CommBank's new rate is still not as low as that offered by its wholly owned digital player Unloan with its 5.74% p.a. (5.65% p.a. comparison rate*) available to refinancers and new borrowers with up to 80% LVR.
CommBank has been careful not to undercut Unloan's rates since it launched its own online-only CommBank Digi Home Loan products almost a year ago.
At the time, it was a curious move given that Unloan had launched its variable home loan product for new lending just over a month prior.
CommBank's move into the digital space was seen as a bid to undercut mortgage brokers by offering a better rate to borrowers dealing with the bank directly than brokers were able to access.
Initially its products were limited to new CommBank customers looking to refinance but are now also available to new owner occupier borrowers.
Digi home loan rates increase to 5.87% p.a. (6.00% p.a. comparison rate*) for new borrowers with 60-70% LVR and 5.89% p.a. (6.02% comparison rate*) for LVRs between 70-80%.
Are these the lowest home loan rates on the market?
Although the big bank's online only rates are competitive, there are still lower variable rates available on the market through smaller lenders.
Here's a couple according to the Savings.com.au database:
- Regional Australia Bank - 5.69% p.a. (5.70% p.a. comparison rate*) variable rate, OO, P&I, no offset, 60% LVR or less
- loans.com.au - 5.79% p.a. (5.83% p.a. comparison rate*) variable rate, P&I, up to 90% LVR
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
