Fee-free loan launched by CBA

Aussies looking to purchase new properties could be encouraged to compare home loans following the launch of a new product by the Commonwealth Bank of Australia (CBA).

The financial organisation has announced the launch of a new fee-free loan, which it claims is the "first of its kind", the Herald Sun reported.

According to the news provider, the new product is the "biggest salvo yet" in the home loan war currently taking place in the country.

The standard mortgage, which is being offered at a rate of just 7.24 per cent, follows the launch of the new online loan being offered by the National Bank of Australia's UBank arm.

Customers tempted by the CBA offering will face no fees including exit charges, late payment penalties or monthly and annual costs.

Ross McEwan, CBA retail chief, told the news provider that the home loan is the "first of its kind in the Australian market''.

"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 added.

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