Commonwealth Bank has moved to simplify the refinancing process, launching a digital refinance application to do so.
The bank now allows customers to kick off their refinancing application, provide ID and consent, and undergo serviceability and credit assessments online.
Homeowners are then put in touch with a home lending specialist from the bank to finalise their applications.
Speaking to Savings.com.au in 2021, CBA spokespeople said a typical new home loan application takes two days to approve - the new digital refinancing process is set to be much shorter.
“Our aim for customers looking to refinance to CommBank is that our digital refinance application will provide a seamless experience,” said Micheal Baumann, CBA executive general manager of home buying.
“The improved self-service functionality means that when a customer is connected with one of our home lending specialists, we are able to progress applications more quickly because we have most of the required information to assess a customer’s suitability for refinancing.
“This enhanced functionality helps to make the process of refinancing to CommBank simpler and faster for our customers.”
The change comes on the back of research conducted by CommBank.
The bank surveyed 419 Aussie mortgage-holders, finding a third would refinance if the process was more streamlined, while 74% are seeking greater flexibility in their home loans.
Such flexibility might include the option to pay less interest by opening multiple offset accounts or the ability to change their repayment data to align with their regular paydays.
Meanwhile, nearly a third would consider refinancing if it allowed them to pay off their home loans faster and one in five would contemplate doing so if it meant they could easily make changes to their repayments.
This comes after the bank announced it would slash the stress test to 1% on some refinance applications.
New data from the Australian Bureau of Statistics (ABS), released on Tuesday found owner-occupiers are refinancing at near-record levels.
More than $14.1 billion worth of home loans held by owner occupiers were externally refinanced in May – a record high.
That slipped slightly in June, coming in at $13.7 billion worth – up 11% year-on-year.
Meanwhile, property investors refinanced $6.5 billion worth of home loans with new lenders, marking a 16% annual increase.
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