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CommBank’s Unloan debuts auto-discounting home loan for buyers

Published 08/04/2024, 04:12 pm

Nearly two years after its launch, Unloan is officially taking applications for new mortgages.

Key points
  • As of today, Unloan is officially offering new mortgages
  • Previously, the CommBank-backed lender only offers home loans to refinancers
  • The move means Unloan now offers one of the lowest interest rates on the market for homebuyers

The product, which rewards loyalty with discounted rates, has previously only been available for borrowers looking to refinance their existing home loan.

The Unloan Variable Rate Home Loan currently offers one of the most competitive rates on the market, at 5.99% p.a. for owner occupiers (comparison rate* 5.90% p.a.).

Such a rate would see the repayments on the average new home loan – around $599,000 in February, according to Australian Bureau of Statistics data – come in at $3,587 a month.

Comparatively, the typical variable rate on a new home loan funded that month – 6.40% p.a., according to Reserve Bank of Australia figures – would demand repayments of $3,708 a month.

Unloan also offers a home loan for property investors, with a variable rate of 6.29% p.a. (comparison rate* 6.20% p.a.)

Key features of Unloan Variable Rate Home Loan

  • Competitive rates
    One of the market's lowest at 5.99% p.a. for owner-occupiers (comparison rate* 5.90% p.a.)
  • Fee-free experience
    No application, discharge, account-keeping, redraw, or late payment fees.
  • Unique discount feature
    An interest rate discount that grows annually by 0.01% p.a., reaching up to 0.30% p.a. after 30 years.

CommBank launched the digital-only home loan offering in 2022, promising to roll it out for home buyers in the near future.

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Since then, many market watchers may have been left wondering when, or even if, that would come about.

Today, would-be home buyers can rejoice in the knowledge they can now apply for an Unloan mortgage.

And they can do so in as little as 10 minutes, according to the lender’s website.

How to apply for an Unloan home loan

Unlike many traditional lenders, Unloan digitally assesses the value of a property as part of a person’s application.

It also performs credit checks, financial verification, and even takes signatures digitally, which supposedly speeds up the home loan approval process.

It also provides conditional pre-approval for wishful homeowners still hunting for a perfect abode.

Home buyers and refinancers can apply for an Unloan home loan on the lender's website.

How does Unloan stack up against other home loan lenders?

The CommBank-backed online lender offers a notably competitive interest rate for owner-occupiers.

"CommBank’s Unloan debuts auto-discounting home loan for buyers" was originally published on Savings.com.au and was republished with permission.

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