CommBank's online home loan applications surge fivefold as borrowers go digital

The bank behind a quarter of Australia's home loans has reported a fivefold rise in online home loan applications over the year to September.

It comes after CommBank's full year results, released in August, show just 34% of mortgages written by the bank originated from brokers, compared to nearly 77% across the market. 

Meanwhile, big banks appear to be increasingly leaning away from brokers in preference of in-house digital channels.

Broker originated home loans are around 20% to 30% less profitable for the lender than mortgages taken out by borrowers approaching directly, according to the bank.

The uptick in digital applications also aligns neatly with the launch and later expansion of CommBank's Digi Home Loan, the bank's lowest-rate mortgage offering available exclusively through its digital channel.

"Customers want more flexibility over how they start the process," CommBank executive general manager of home buying Marcos Meneguzzi said

"People are blending digital and personal support to get the experience that suits them best."

Digi Home Loan likely cornerstone of direct-channel growth

Data from the big bank, comparing home loan submissions in September 2025 versus September 2024, shows borrowers are increasingly adopting digital application channels.

Digital applications from the first home buyers and borrowers in their 50s have grown 300% year-on-year while those from borrowers aged 21 to 30 years surging 500% over the past 12 months.

Those aged 31 to 40 years were behind a third of all online home loan submissions.  

It follows the unveiling of the Digi Home Loan - carrying CommBank's lowest variable rate - for refinancers in August 2024 and its expansion to home purchasers in March 2025.

The Digi Home Loan is only available to new-to-bank borrowers applying directly through its digital channels.

At the time of writing, the product advertises a variable rate of 5.34% p.a. (5.47% p.a. comparison rate*) for owner-occupiers with loan-to-value ratios (LVRs) of 60% or less.

That's in line with the bank's lowest fixed rate - 5.34% p.a. (7.13% p.a. comparison rate*) for three years.

It's also 25 basis points below the lowest variable rates offered on its Simple and Standard home loan products, effectively pricing in a rate cut for borrowers choosing to go digital.

"Traditionally, first home buyers have preferred a face-to-face experience, but that's starting to change," Mr Marcos said.

"Just as they're comfortable researching and shopping online for everyday purchases, they're now applying the same habits to bigger decisions like buying a home."

It's also worth noting that, while the above figures don't include the bank's subsidiaries, it now houses two digital-only lenders: non-bank Unloan and the now-branchless Bankwest.

Other big banks lean on technology to improve customer experience

CommBank is far from alone in providing special rates exclusively for borrowers turning to its digital channels.

ANZ offers its ANZ Plus range, which currently services around 30% of its addressable market with a broker offering piloted earlier this year.

Westpac, along with advertising an online refinancing special offer, also boasts an AI mortgage assessor aimed at speeding up lending decisions.

In addition, both NAB and CommBank have online-only subsidiary lenders, with NAB behind ubank.

ubank saw around 13% growth in lending over the six months to March, raking in $15.1 billion worth of home loans.

Banks pushing brokers to the wayside in favour of digital channels

ANZ, NAB, and CommBank have all vocalised intent to pursue a greater level of in-house lending, steering them away from the broker channel.

Broker-written home loans are generally less profitable than those written in-house, typically demanding an upfront fee (generally around 0.65% of the loan value) and trailing fees (often 0.15% of the loan value per year).

As S&P Global predicted earlier this year, the banks are largely attempting to skirt brokers by bolstering their digital channels and being more transparent on pricing.

ANZ is taking its mission to bolster its proprietary lending channels a step further - its ANZ 2030 strategy, announced in October, will see the bank increase the number of lenders in its branches by 50%, improve its ANZ Plus digital front end, and better its bankers' tools.

But the mortgage broker industry has labelled banks' moves away from the brokerage channel 'misguided'.

"A few of the majors have been obsessed for a while about trying to increase their direct business and in some cases reducing support for the broker channel, but they are missing the point," Finance Brokers Association of Australia Peter White said last month.

"Finance and mortgage brokers are not in competition with banks, but are simply providing the personal service, expertise, and competition that customers demand.

"The major banks hate competition and if they had their way they'd go back to the old days when a few of them controlled the market but the losers back then were consumers."

Mr White pointed out that brokers legally must work in the best interest of their customers and referenced the Hayne Royal Commission which investigated banking misconduct.

However, CommBank argues its digital swing is simply offering borrowers more choice.

"This isn't about moving away from our existing channels - it's about providing choice and additional support through lenders once an application is submitted," Mr Marcos said.

"Some customers prefer to begin online, others want to talk in person. What matters is that they can choose what works best for them."

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_{Image created on Canva using assets from Commonwealth Bank of Australia}