Australian borrowers boosted by 'ground-breaking new home loan'

Australians on the lookout for home loans have been given a further boost with the launch of a new mortgage deal which is being touted as being the 'first of its kind'.

Over the past few weeks, the country's biggest lenders have been battling it out to win over borrowers, with the National Bank of Australia (NBA) having recently hit the headlines by offering to pay the exit fees of anyone who switches to it from one of its rivals.

Now it's the turn of the Commonwealth Bank (CBA) to make its presence felt in the increasingly competitive market.

As from today, the lender will offer a fee-free standard mortgage with a rate of just 7.24 per cent, with this comparing favourably with the 7.67 to 8.0 per cent rates on offer elsewhere.

Announcing the news, CBA chief executive for retail banking Ross McEwan explained that this is an innovative and ground-breaking product.

"We have seen some moves in recent weeks that show our competitors are trying to catch up to our leading position and we welcome the challenge, because competition is good for customers," he said.

Meanwhile, the Noosa Journal has reported that the local NAB branch has seen strong interest in its fee-free home loans since the national advertising campaign was launched.

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