Australia’s largest lender has dropped the rate on its Digi Home Loan product to 5.84% p.a. – matching those offered by competitors.
The product’s lowest rate was cut by six basis points this week, dropping from 5.90% p.a. to 5.84% p.a. (comparison rate 5.97% p.a.) for borrowers with loan-to-value ratios (LVRs) of 60% or less.
CommBank‘s Digi Home Loan is available only to those applying directly via CommBank’s website, with both purchasers and borrowers refinancing new-to-bank loans eligible.
While the lowest rate is reserved for owner-occupiers with deposits or equity of at least 40%, borrowers with smaller deposits can still access competitive rates under the same product.
The following rates are those currently advertised on the product for both owner-occupiers and investors making principal and interest repayments:
|
Borrower |
Max LVR |
Rate |
Comp rate* |
|---|---|---|---|
|
Owner-occupier |
60% |
5.84% |
5.97% |
|
70% |
5.87% |
6.00% |
|
|
80% |
5.89% |
6.02% |
|
|
Investor |
60% |
6.03% |
6.16% |
|
70% |
6.06% |
6.19% |
|
|
80% |
6.16% |
6.29% |
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In the market for a competitive home loan? Here’s are some of the lowest rate options available now:
| Lender | Home Loan | Interest 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 | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
5.79% p.a. |
5.83% p.a. |
$2,931 |
Principal & Interest |
Variable |
$0 |
$530 |
90% |
|
Promoted |
Disclosure | |||||||||||
|
5.84% p.a. |
5.86% p.a. |
$2,947 |
Principal & Interest |
Variable |
$0 |
$250 |
60% |
|
Promoted |
Disclosure | |||||||||||
|
5.74% p.a. |
5.65% p.a. |
$2,915 |
Principal & Interest |
Variable |
$0 |
$0 |
80% |
|
|
Disclosure |
Important Information and Comparison Rate Warning
How does CommBank’s digital-only home loan stack up?
CommBank’s latest cut sees its online-only product advertising similar rates as the digital home loan offerings of Westpac and ANZ.
Though, both Westpac and ANZ only advertise digital-only mortgages to direct-to-bank applicants refinancing existing loans, with purchasers deemed ineligible.
Here’s how the lowest rates offered from each of Australia’s big four banks stack up:
|
Bank |
Product |
LVR |
Rate |
Comp rate* |
|---|---|---|---|---|
|
CommBank |
Digi Home Loan |
60% |
5.84% |
5.97% |
|
Westpac |
Flexi First home loan |
70% |
5.84% |
5.85% |
|
NAB |
Base Variable Rate Home Loan |
95% |
6.19% |
6.23% |
|
ANZ |
ANZ Plus Home Loan |
80% |
5.84% |
5.85% |
CommBank’s Digi Home Loan will soon celebrate its first birthday, having been launched in May 2024.
Borrowers turning to the product will face a $300 establishment fee and a $10 monthly service fee, though this could be negated with a $10 monthly cashback if Yello Homeowner eligibility is met.
It can also come with a linked offset account for an extra $10 per month.
CommBank cuts amid expectations of RBA rate drop
CommBank’s rate cut comes as its economics team maintains its forecast that the Reserve Bank of Australia (RBA) will cut the cash rate by 25 basis points later this month.
While the Labor party’s re-election didn’t alter that outlook, the bank did revise down its GDP forecast.
“We have not made changes to our economic forecasts or RBA call as a result of the Labor party retaining Government,” CommBank head of Australian economics Gareth Aird said on Thursday.
“Monetary policy is restrictive and the case to continue to normalise the cash rate is sound.
“But we still expect the RBA to take a gradual approach in normalising the cash rate given underlying inflation is essentially tracking in line with its forecasts.”
Image by Mattinbgn on Wikimedia Commons
