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

Commonwealth Bank has been in our headlines a lot lately, from their new green home offer to the near endless march of variable rate hikes.

Fortunately, something fantastic came out of 2022, as well. CommBank debuted Australia’s first digital home loan with a discount that increases every year up to 30 years.

So what do you need to know about the innovative Unloan home loans?

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

Given that the process is entirely online, Unloan could provide 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 5.74% p.a. (5.65% 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 6.04% p.a. (5.95% p.a. comparison rate*), with the same loyalty discount rate up to thirty years.

Unloan’s debut rate also sits 0.87% p.a. below the current variable average of 6.61% 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. Score!

Customers keen to refinance to Unloan’s flashy rates and perks 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%. 

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.