CommBank’s new Digi Home Loan is not making waves interest-rate wise
The mortgage market saw minimal activity over the past week, with only three smaller lenders adjusting fixed rates and four adjusting variable rates, according to RateCity.com.au.
During this quiet week, notable rate adjustments include The Capricornian reducing its owner-occupier principal and interest fixed one-year rate by 0.30 percentage points to 5.99%. P&N Bank also lowered its owner-occupier principal and interest variable rate for loan-to-value ratios (LVR) between 60% to 80% by 0.14 percentage points to 6.15%.
Greater Bank increased its owner-occupier principal and interest variable rate for LVRs below 80% by 0.10 percentage points to 6.09%, while Horizon Bank raised its owner-occupier principal and interest fixed one-year rate for LVRs below 70% by 0.10 percentage points to 5.99%, and Queensland Country Bank upped its investment principal and interest fixed three-year rate for LVRs below 80% by 0.30 percentage points to 6.39%.
For fixed rates, Queensland Country Bank offers the lowest advertised one-year term rate at 5.74%. Australian Mutual provides the lowest rates for both two- and three-year terms at 5.53% and 5.48%, respectively, with the two-year term being a First Home Buyer special. Peoples Choice holds the lowest four-year term rate at 5.79%, and RACQ has the lowest five-year term rate at 5.59%.
The big four banks have consistent one-year term rates of 6.59%, with slight variations for longer terms. For example, Westpac offers a two-year rate at 6.49%, NAB at 6.59%, ANZ at 6.54%, and CBA at 6.84%.
In the variable rate category, the lowest advertised rates are led by Abal Bank at 5.75%, followed by G&C Mutual Bank at 5.80%. Among the major banks, the lowest advertised variable rates are CBA at 6.15%, Westpac at 6.44% with a subsequent increase of 0.4 percentage points after two years, NAB at 6.79%, and ANZ at 6.54%.
“The biggest news in the mortgage market this week was the launch of CBA’s new digital home loan, exclusive to refinancers willing to apply direct to bank online,” said Sally Tindall (pictured above), director of research at RateCity.
“This new home loan is available to owner-occupiers and investors on both principal and interest, and interest-only terms, provided refinancers have at least 20% equity in their home. However, the sharpest rates are reserved for owner-occupiers paying down their debt with at least 40%.
“With a lowest advertised rate of 6.15%, CBA’s new Digi Home Loan is not rocking any boats interest-rate wise, with competitors ANZ Plus, Bendigo and Macquarie all offering lower advertised rates, not to mention CBA’s own Unloan brand, which is sitting at 5.99%.”
Tindall said the latest Consumer Price Index (CPI) figures for April suggest that the anticipated cash rate cuts will be delayed. Previously forecasted for early in the second half of this year, the cuts are now unlikely until very late this year or more realistically in 2025, she added.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
