Commonwealth Bank joins ‘simpler and faster’ online home loan refinancing trend
Long gone are the days when you need to lodge a home loan application in person. Now, even mortgage management can be done in-app at the touch of your fingertips, thanks to light-year advances in mobile banking.
However, with the costs mounting on homeowners as interest rates rise, switching home loans to more flexible, convenient offers has become a popular den of last resort. But in addition to hurdles in serviceability and borrowing power , Commonwealth Bank research reveals that three out of four Australians would switch lenders if the process were simple and fast – two words not often associated with ‘refinancing’.
However, CommBank plans to change all that. This week, the big bank has become the latest lender to revamp its mortgage offerings with a new digital platform that lets customers refinance their home loans online, from ID checks and credit assessments to the final submission, all with the guidance of a lending specialist.
CBA claims the streamlined process responds to Australians’ demand for a ‘seamless experience’ when refinancing.
“Our Digital Refinance application means customers have the option to progress their online application much further than what was previously possible, enabling them to complete a large portion of the application process directly online,” explains CBA executive general manager of home buying at CBA, Dr Michael Baumann.
“The improved self-service functionality means that when a customer is connected with one of our Home Lending Specialists, we are able to progress applications more quickly because we have most of the required information to assess a customer’s suitability for refinancing. This enhanced functionality helps to make the process of refinancing to CommBank simpler and faster for our customers.”
CommBank has padded the Digital Refinance application portal with features to help home loan borrowers enjoy greater flexibility. Other online mortgage lenders like Up, ubank, and Unloan (the latter built by CommBank) have been pioneering the area for a while now. The fact that a Big Four Bank has taken notice of the online home loan trend indicates that the market has shifted away from traditional lending.
“We can see from our research that Australian homeowners are looking for more flexibility from their home loan, which is something we strive to offer,” says Dr Baumann.
“Our aim for customers looking to refinance to CommBank is that our digital refinance application will provide a seamless experience.”
Compare refinance home loan options in the table below.