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Borrowers can now commence and submit refinance applications online with the major bank as part of a new digital refinancing solution.
The Commonwealth Bank of Australia (CBA) has rolled out a new digital functionality that enables proprietary channel customers to not only start their own digital refinance applications online but also verify their ID and complete a credit assessment online before finalising their applications with a CBA home lending specialist.
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The digital refinancing capability has been rolled out by the major bank to “make it easier and quicker for customers to refinance their home loan online” and came after CommBank research found that one in three Australian home owners would consider refinancing if the process was simple and fast.
It is not available to the broker channel.
Speaking of the new capability, the executive general manager of home buying at CBA, Michael Baumann, said the new functionality was born out of the drive to create a more seamless experience for customers 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,” he said.
“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.”
However, he stated that specialist support was still critical, citing CBA research that has found that nearly a fifth of Australian home owners would consider refinancing if they could talk to a lending specialist for support along the way.
The research of 1,047 respondents, conducted by the House of Brand Group between 4 and 11 April 2023, had around 419 respondents with a mortgage.
According to the CBA research, additional features that could make an Australian home owner consider were:
- The ability to pay off their loan sooner (31 per cent)
- The ability to easily make changes to their repayments (22 per cent)
Around three-quarters said they wanted more flexibility in their home loan, including by having multiple offset accounts, changing repayment dates to align with when they get paid, and adjusting home loan repayment frequency and amounts online or via an app.
He said: “While the Digital Refinance application means that customers can complete a large portion of their application online, it retains the important role of a home lending specialist, which we know adds value for many customers.
“We can see from our research that Australian home owners are looking for more flexibility from their home loan, which is something we strive to offer.
“Our aim for customers looking to refinance to CommBank is that our digital refinance application will provide a seamless experience.”
[Related: Broking industry calls out CBA clawback move]
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