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

Advertisement

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.

Update resultsUpdate
Filters
LenderHome LoanInterest 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 TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
5.70% p.a.
$2,899
Principal & Interest
Variable
$0
$0
60%
  • Up to $4k Cashback
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Redraw
  • More details
  • Up to $4k cashback when you take a loan with us (Terms and Conditions apply)
  • Quick and Easy online application, with no upfront or annual fees.
  • Unlimited additional repayments free of charge.
 Disclosure
5.79% p.a.
5.83% p.a.
$2,931
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.74% p.a.
5.65% p.a.
$2,915
Principal & Interest
Variable
$0
$0
80%
  • 100% owned by Commbank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.84% p.a.
6.08% p.a.
$2,947
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image supplied



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy