How does CommBank’s new Digi Home Loan compare?

A very smiley woman uses her laptop to research home loans from her comfy living room couch

A low headline rate from a Big Four bank is bound to turn heads. But is CommBank’s new Digi Home Loan more than just a pretty face? 

CBA’s newest home loan offering charges a competitive 6.19% p.a. (6.32% p.a. comparison rate*), which smashes the long-held average variable Big Four home loan rate in the Mozo database, at 7.41% p.a. (for owner-occupiers paying principal and interest on a $400,000 loan, with <80% LVR. Correct as at 5 June 2024). 

It even beats the average non-Big Four variable rate in the database for the same borrower criteria, at 6.77% p.a. 

But there’s a catch…

The Digi Home Loan is only available for refinancers with a maximum loan-to-value ratio (LVR) of 80%. This means first home buyers and those without a 20% deposit will have to look elsewhere. 

The Digi Home Loan is also pretty basic when it comes to features. For instance, there’s no option to use an offset account with this home loan. However, you can make unlimited extra repayments and redraw them whenever you like for free – as long as you complete the transaction through the CommBank app or online (you’re charged $15 to do it over the phone or in-branch). 

There’s also the matter of the $10 monthly service fee which, for a home loan that is meant to be completely digital (i.e. not requiring the intervention of a bank teller to process repayments), seems high. That being said, it’s not uncommon to see lenders charging a monthly fee, and there is (sort of) a way around it if you’re a CommBank Yello customer.

CommBank Yello Homeowner customers can get their $10 monthly service fee back as cashback, so long as they meet the eligibility requirements, which include making 30 eligible transactions per month using an eligible CBA transaction account or credit card (T&Cs apply).  

Why not just go with Unloan? 

If you’re after a competitive home loan, with the backing of a Big Four bank, then consider Commbank’s ‘digital brainchild’, Unloan. 

It’s done away with fees, comes with a lower interest rate, is available for new borrowers and refinancers alike, has won several Mozo Experts Choice Awards, and even has an automatically discounting interest rate.

Unloan Variable (Owner Occupier, LVR <80%)
  • 5.99% p.a. variable rate (5.90% p.a. comparison rate*)
  • Zero upfront or ongoing fees
  • Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^

Unloan’s Variable Home Loan has taken out a low cost home loan award for the second year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.

Where do I get it? Head over to Unloan to find out more >>

This highlights why a home loan comparison is so important for those looking to save money on interest repayments and fees.

Of course, these are two rates out of the more than 400 home loans Mozo tracks. To see more, compare home loans today.

* 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

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