CommBank, Unloan, mutual banks cut home loan rates after RBA move

Among those moving this week were BCU Bank, P&N Bank, and Beyond Bank, while CommBank and its digital lending brand Unloan dropped surprise variable rate cuts. 

Their moves sees them advertising some of the lowest variable interest rates for property investors in the Your Mortgage database.

CommBank slashes Digi Home Loan rates for investors

The biggest name in the Australian home loan space made a notable move on Friday morning, dropping variable rates for investors turning to its Digi Home Loan product.

The product is only available to borrowers applying directly through the bank's website – its 2024 launch was likely an attempt to bypass brokers.

"With over 12 million CommBank app logins every day, we know many of our customers want to engage digitally," a CommBank spokesperson said on Friday.

"Our Digi Home Loan allows tech-savvy homebuyers to self-serve online and take advantage of a fully digital application process, ensuring a seamless, efficient, and valuable lending experience."

Property investors turning to the Digi Home Loan could now realise rates as low as 5.69% p.a. (5.82% p.a. comparison rate*).

That's among the lowest rates on offer to investors right now – just 10 basis points above apparent market leaders Easy Street and RACQ, both of which currently advertise investor rates starting at 5.59% p.a. (respective comparison rates* of 5.64% and 5.60%).

The Digi Home Loan investor rate changes revealed by CommBank include:

Repayment type	LVR	Change	New rate	Comp rate*
Principal and interest	<60%	-9bp	5.69%	5.82%
	<70%	-7bp	5.74%	5.87%
	<80%	-12bp	5.79%	5.92%
Interest only	<60%	-9bp	5.95%	5.92%
	<70%	-7bp	6.00%	5.97%
	<80%	-12bp	6.05%	6.02%

Unloan takes knife to variable investor mortgage rates

Meanwhile, CommBank's digital-only lending arm Unloan also dropped variable investor rates this week, and now also offers rates starting at 5.69% p.a. (5.60% p.a. comparison rate*).

That's available to property investors with loan-to-value ratios (LVRs) of 80% or less – meaning their deposit or equity is worth at least 20% of their property's value.

Unloan's new rate sees it offering one of the lowest variable rates currently available to investors in the 70% to 80% LVR range, according to the Your Mortgage database

Aside from its currently competitive rates, Unloan's main selling point is its loyalty discount.

Borrowers receive a one basis point (0.01%) discount for every year they hold their home loan with the lender - up to a maximum discount of 30 basis points.

More mutual banks pass on the RBA rate cut

Some of the last lender rate changes on the back of the RBA's May rate cut are trickling through, with many mutual lenders among the last to move.

Among those cutting this week was Perth-based P&N Bank and its sister brand BCU Bank, certified B-corp institution Beyond Bank, Tasmania's Bank of us, and Sydney's Community First Bank.

The new, lowest advertised variable rates among the above banks are as follows:

Bank	Lowest variable rate	Comp rate*
P&N Bank	5.63%	5.66%
BCU Bank	5.49%	5.52%
Beyond Bank	5.64%	5.67%
Bank of us	5.69%	5.71%
Community First Bank	5.49%	5.54%

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Important Information and Comparison Rate Warning

_{Image by Kevin Doran on Unsplash}