Australia's largest home lender launched its digital-only Digi Home Loan with an interest rate of 6.15% p.a. for owner occupier loans with a loan-to-value (LVR) ratio ≤60% (6.28% p.a. comparison rate*).

The rates go up from there to 6.19% p.a. (6.32% comparison rate*) for 70-80% LVR owner occupier loans.

There's nothing inherently suspicious about the offerings but it comes just over a month after CBA-backed digital-only lender Unloan launched its variable home loan for new lending at a more competitive 5.99% p.a. (5.90% comparison rate*).

What is CommBank up to?

The media has speculated Digi Loan is CBA's way of undercutting mortgage brokers by offering borrowers a better rate to sign with the bank directly than brokers are able to access.

It seems several big banks aren't happy with broker cuts from new loans, including upfront and trailing commissions that eat into bank margins.

The Digi Home Loan will be limited to new CommBank customers looking to refinance home loans from other lenders.

The Unloan Variable Home Loan, launched in April, is now open to both refinancers and new mortgages.

Sixteen extra basis points seems a high price to pay for the CBA yellow badge, even if it is via app only, but each to their own.

The new CBA product comes in an otherwise steady week on the mortgage market where a few small lenders lowered their home loan rates.

BCU Bank shaves variable and offset rates

The bank that originally hails from the New South Wales north coast (now a division of P&N Bank) has taken five basis points off its OMG Home Loan variable rate home loan for 60-80% LVR principal and interest (P&I) loans.

It takes the new rate to 6.04% p.a. (6.07% p.a. comparison rate*).

BCU Bank has also adjusted its Offset Home Loan rates, as follows:

Product Change (%) New rate Comparison rate*
Offset Home Loan ≤60% -0.05 6.14% p.a. 6.17% p.a.
Offset Home Loan 60-80% -0.06 6.23% p.a. 6.23% p.a.

Offset home loans come with a 100% offset account and an available redraw facility.

Fixed rate drops

Other rates movers this week sent their fixed rates lower after a run of fixed rate rises on the market in recent months.

The Capricornian dropped its Premium Choice 1 Year Fixed rate home loan by 30 basis points to under the 6% mark at 5.99% p.a. (7.34% p.a. comparison rate*).

Premium Choice loans come with a 100% offset account and no ongoing fees.

Meantime, Qudos Bank cut a range of its fixed loans by up to 20 basis points on its four- and five-year fixed rates for owner occupier and investor loans, both P&I and interest only (IO).

Its best new rate is 6.44% p.a. (6.36% p.a. comparison rate*) for LVR 90% owner occupier P&I loans fixed for four years.


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
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • 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.
6.09% p.a.
6.11% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
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.

Image by Brad Langford on Unsplash

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