CommBank launches ‘Unloan’, the digital home loan for young buyers

By Evlin DuBose and Jack Dona
Last updated Monday, 8 April 2024 · 3 min read

Fact Checked

A modern black and white home in Melbourne Australia, at twilight. — Photo by R. Architecture on Unsplash.

Important update: As of 8 April 2024, Unloan products are now available to new borrowers, removing the previous refinance-only restriction.

In 2022, CommBank debuted Australia’s first digital home loan with a discount that increases every year up to 30 years, Unloan. Here's what you need to know about these innovative digital home loans, and their brilliant interest rates.

What is Commbank’s online home loan, Unloan?

Photo by Jonathan Borba on Unsplash.

Built with modern technology from CommBank’s venture scaler, x15ventures, Unloan is a digital variable home loan which promises to offer greater speed and access to home loan support tools for new borrowers and those looking to refinance.

Given that the process is entirely online, Unloan provides young tech-savvy buyers with an attractive alternative to the traditional banking model. In fact, CommBank estimates the sign-up process can be completed in as little as 10 minutes.

“We believe home loans should be simple to understand, easy to get, and easier to live with,” says Unloan CEO Daniel Oertli. “That’s why we built Unloan – a new kind of home loan designed to pass more value back to customers.”

The best news, however, is arguably the rates. Unloan offers owner-occupiers a variable rate priced from 5.99% p.a. (5.90% p.a. comparison rate*), along with a loyalty discount that shaves 1 basis point off their interest every year for up to thirty years.

For investors, the low variable rate comes in at 6.29% p.a. (6.20% p.a. comparison rate*), with the same loyalty discount rate up to thirty years.

Unloan’s debut rate also sits 0.86% p.a. below the current variable average of 6.85% in Mozo’s database for OO P&I home loans ($400,000, LVR < 80%).

As an additional eye-catching draw, Unloan impressed Mozo's experts so much it won a Mozo Experts Choice Home Loan Award for 2023 in the Best New Home Loan category. Plus, in 2024, Unloan also won an award in the Low Cost Home Loan category. Score!

Customers keen to finance (or refinance) their home purchase with Unloan can do so from today, so long as the amount borrowed doesn’t exceed $10 million and their loan-to-value ratio is less than 80%.

How much could Unloan really save you?

What is Unloan CBA?

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Important disclosures and comparison rate warning*

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Comparison rate warning

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Unloan

Variable rates from 5.99% p.a. (5.90% p.a. comparison rate*)
Rate discount added annually (T&Cs apply)
Free extra repayments and redraws

Go to site

For owner-occupiers looking for a competitive variable rate, Unloan represents a compelling option. With handy features, no provider fees, and a loyalty discount that shaves 0.01% p.a. off your rate each year (conditions apply), CBA’s newest digital home loan rethinks long-term commitments with the customer in mind.

To be eligible, you must be a refinancer with a loan-to-value ratio (LVR) lower than 80%.

Launch of Unloan and “Yello” rewards program could clue CommBank customers into bigger home loan savings

A mischievous woman climbs green savings bars. Collage.

CommBank has also announced their new recognition program, CommBank Yello, which rewards eligible CBA home loan borrowers with money-saving rewards and personalised deals.

“With CommBank Yello there are no tiers, no statuses and no need to spend more,” explained CommBank CEO Matt Comyn in a 2022 statement.

“We simply want to recognise customers for the depth and duration of their relationships with us by offering them tangible value and ways to save. It’s our way of thanking customers for continuing to bank with us.”

Homeowner rewards through Yello can include:

$10 monthly cashback on eligible home insurance policies.
$4 monthly cashback on Home Loan packages.
An monthly prize draw where 100 customers win $1200.
Yello exclusive offers and discounts.
Property trends report tailored to your local area.

To be eligible, CBA home loan borrowers must have a qualifying CommBank transaction account and settle at least thirty purchases on their debit or credit card per month. Eligible customers will be notified by CommBank.

This latest initiative, including the CommBank green home offer, mark a shift in the big bank’s response to its customers. Smaller lenders tend to provide more competitive home loan rates than the Big Four banks, as well as digital or eco-conscious perks. Programs like Yello and Unloan may indicate CommBank’s awareness of changing times and consumer attitudes.

“Driving digital innovation for our customers is core to our strategy,” continued Comyn. “Our strategy is [...] to give customers more reasons to bank with the Commonwealth Bank.”

Curious about home loans? Compare some on offer below, or head over to our home loan comparison hub for more.

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^* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Evlin DuBose

RG146

Senior Money Writer

Evlin, RG146 Generic Knowledge certified and a UTS Communications graduate, is a leading voice in finance news. As Mozo's go-to writer for RBA and interest rates, her work regularly features in Google's Top Stories and major publications like News.com.au.

Jack Dona

RG146

Money writer

Jack is degree-qualified in communications and creative writing, with a talent for simplifying financial jargon. His approach helps consumers make better decisions. Jack is RG146 certified in generic knowledge and uses flair to make finance interesting.