Unloan opens books to new borrowers on self-discounting home loan

By Jack Dona · · 2 min read
Fact Checked
Advertiser disclosure
A model house held on a person's palm

From today, CommBank’s fully digital home loan, the Unloan Variable, scraps its refinance-only rule and opens its books to new borrowers.

When Unloan launched in 2022, only those refinancing an existing home loan could access the Mozo Experts Choice Award^ winner's annual interest rate discount.

“Now that new borrowers have the option ... I think a lot of people will consider it when they compare home loans.”

Winner of the Best New Home Loan^ award in 2023 and a Low Cost Home Loan^ award in 2024, Unloan commits to applying a 0.01% discount to your interest rate each year, up to a total discount of 0.30% after 30 years (T&Cs apply).

With a variable rate starting at 5.99% p.a. (5.90% p.a. comparison rate*), it’s a very competitive home loan that comes in well below the average variable rate in the Mozo database of 6.83% p.a. (OO, P&I, $400k, <80% LVR).

Key features of the Unloan Variable home loan

  • Competitive interest rate
  • No upfront or ongoing fees
  • Auto-discounting interest rate 
  • Free extra repayments
  • Free redraw facility

Competitive rate, features, and loyalty discount make it an attractive option

Mozo finance expert Peter Marshall says it’s great to see new buyers can now access such a competitive rate.

“Buying a property is a huge expense, so ensuring you have a low rate from day one is crucial,” Marshall said. 

“Since the Unloan Variable launched, it has been an incredibly competitive home loan with great features, like the automatic loyalty discount, and low fees. 

“Now that new borrowers have the option to make it their first choice, I think a lot of people will consider it when they compare home loans.”

Unloan - Variable Home Loan
  • 5.99% p.a. variable rate (5.90% p.a. comparison rate*)
  • Zero upfront or ongoing fees
  • Annual rate discount of 0.01%, up to 0.30% after 30 years (T&Cs apply)
  • Free extra repayments and redraw facility

  • No offset account available

Unloan’s Variable Home Loan took out a Mozo Experts Choice Awards 2024^ in the low cost home loan category. 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. Now available for new loans and refinance loans of up to $10M. Minimum 20% deposit. 

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

How does Unloan compare to other home loan lenders?

The interest rate on the Unloan Variable stacks up quite well compared to the average variable rate in the Mozo database. 

At 5.99% p.a. (5.90% p.a. comparison rate*), Unloan comes in well below the database average of 6.83% p.a. (OO, P&I, $400k, <80% LVR). 

The average mortgage size in Australia, according to ABS lending indicators, is about $599,000. Here's how Unloan compares to the average variable rate in the Mozo database (as at 8 April 2024):

Interest rateMonthly repayments
Unloan Variable5.99% p.a. (5.90% p.a.*)$3,856
Average rate6.83% p.a.$4,169

As always, it’s important to compare home loans to find the right one for you. The average variable home loan (OO, P&I, $400k, <80% LVR) in the Mozo database may be 6.83% p.a., but the lowest we track comes in at 5.80% p.a. (at the time of writing). 

So check out a few of the highlighted home loans below, or check out some more award-winners named as the best home loans in Australia. 

Home loan comparisons on Mozo - last updated 30 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

    Compare
    Go to site
    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

    Compare
    Go to site
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Find out more
    Details
  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

    Compare
    Find out more
    Details
  • SMSF Home Loan

    LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.99% p.a. variable
    7.00% p.a.

    Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.

    Compare
    Find out more
    Details

* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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.