Commonwealth Bank launches digital home loan with 10-minute application

The Commonwealth Bank has launched a new digital home loan that it says customers can apply for in as little as 10 minutes.

Called "Unloan", the loan will provide only one standard interest rate depending on whether the customer is an owner-occupier or an investor.

Owner-occupiers will pay interest at a rate of 2.14 per cent while investors will pay interest at a rate of 2.44 per cent.

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CBA says a major selling point of the new product is that digital applications could take as little as 10 minutes to complete.

The bank is offering a "loyalty discount" that grows by 0.01 per cent every year for up to three decades.

The bank's CEO Matt Comyn said Australians were looking for digital products, but wanted the security of one of the country's biggest banks before committing.

"As customer expectations continue to change, we know a growing number of Australians are ready to consider a digital home loan that's easy to get and more rewarding to live with," Comyn said. 

"And, just as importantly, backed by a brand they know and trust. 

"By bringing together the pace and innovation of the start-up world with the scale and assets of Australia's leading bank, we've reimagined what a home loan can look like."

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Customers who are interested in refinancing their properties up to the value of $3 million and up to 80 per cent of their value can start applying from today.

Digital home loans are a rapidly expanding suite of products in Australia's booming housing market.

Unlike traditional loans, digital loans can be almost entirely handled online using electronic identity checks, e-signatures and online property valuations.

The space has become increasingly competitive given the rise of digital-only neobanks that typically offer more competitive rates than the traditional "big four".

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