Australia's largest home lender says its digital home loan channel has become the bank's fastest growing.
CommBank says the number of people submitting online home loan applications has increased five-fold compared to a year ago, while those submitted by first home buyers have increased four-fold.
The data covers all digital applications, including those through CommBank's dedicated Digi Home Loan channel which opened to new borrowers in March this year.
The CBA-branded Digi Home Loan product was launched in May 2024, initially to external refinancers only.
It was a pointed addition to CommBank's wholly owned digital lending brand Unloan which had opened to new borrowers just the previous month, after also launching to refinancers only in May 2022.
War against brokers continues
At the time, it was widely speculated the CommBank-branded Digi Home Loan was part of the bank's quest to minimise its reliance on mortgage brokers to drive growth.
Its advertised variable interest rates have never been as low as Unloan's, but Digi's initial rates at least were better than mortgage brokers were able to offer on the same loans.
CBA's executive general manager of home buying Marcos Meneguzzi said the bank's strong digital growth is because customers want more flexibility over how they start the process.
"As Australia's largest lender, we can see this trend across all types of customers," he said.
"People are blending digital and personal support to get the experience that suits them best."
CommBank data shows younger Australians are leading the shift with online home loan applications from people in their 20s now six times higher than a year ago, while those in their 30s make up the largest share of digital applicants at 34%.
First home buyers making online applications have more than quadrupled year-on-year, the bank said.
Another shot fired
In what seems a pointed remark on third-party lending, the bank's media release said many first home buyers are "choosing to start their home buying journey online before being connected with a lender".
"Traditionally, first home buyers have preferred a face-to-face experience, but that's starting to change," Mr Meneguzzi said.
But it seems CommBank is keen to assure the public the growth "isn't about moving away from [its] existing channels".
"It's about providing choice and additional support through lenders once an application is submitted," Mr Meneguzzi said.
CommBank has been among the most aggressive of the big banks in trying to claw back its home lending from brokers and originating more loans in-house.
Its mortgage book broke the $600 billion mark for the first time in September, according to official APRA data, growing 0.68% over the month, higher than the market average.
CBA had earlier flagged that loans written through brokers can be around 20-30% less profitable than those taken out through its own channels.
However, brokers aren't going anywhere - the latest data shows around three-quarters of all new home loans in Australia continue to come through broker channels.
Third-party originated loans, as per APRA data, neared the $119 billion mark in the June quarter, a new record.
CommBank's advertised variable Digi Home Loan rates remain higher than comparable rates offered by specialist online lenders while a linked offset account to a Digi Home Loan also incurs a $10 monthly fee.
Westpac slips in home lending stakes
Meantime, Australia's second-largest home lender Westpac has lost some traction in the mortgage market.
Its annual report, released on Monday, showed its home lending growth of 5% was below the average mortgage lending growth rate of all banks.
The latest APRA data, released on Friday, also revealed Westpac had lost the most market share of the major banks during the past 12 months.
CBA's has remained flat while both National Australia Bank and ANZ have also lost market share.
However, Westpac said it expects its housing credit growth to increase by 6.6% during 2025.
It also reported its 90-day home loan arrears have fallen as mortgage stress has eased in line with interest rate cuts.
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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 |
