Major bank announces investor lending change

By Annie Kane
14 March 2017
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A big four bank has announced that it is reducing the maximum LVR ratio for investment home loans to 90 per cent, effective immediately.

Commonwealth Bank has reduced the maximum loan-to-value ratio for investment home loans to 90 per cent, meaning investors should ensure they have a 10 per cent deposit.

This change relates only to investment home loans and is effective immediately. 

There has been no change for owner-occupier home loans.

 
 

The bank has said it expects the change will affect "a very small percentage of the home loan applications" it receives.

Dan Huggins, executive general manager home buying, Commonwealth Bank, added: “We are constantly reviewing our home loan portfolio.

"[This] change will enable us to meet our customers’ needs, while further strengthening our high quality home loan business and ensuring we continue to meet our responsible lending and regulatory obligations.”

 

 
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Annie Kane

Annie Kane

Author

Annie Kane is the managing editor of Momentum's mortgages titles: The Adviser and Mortgage Business.

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As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Annie has a degree in English Literature and Music from the University of Sheffield and is a Mental Health First Aider (MHFAider®).

Email Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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