Interest only

The lender has extended the maximum interest-only period, becoming the first among the majors to offer 15 years.

The prudential regulator has flagged that investors relying on property sales to service consecutive interest-only loans is “not good banking practice”.

New research has found that some mortgage holders have switched to interest-only payments in “a last-ditch effort” to sidestep falling into arrears.

The recent decision to shake up its interest-only term policy leaves an opportunity for CBA to appeal to more property investors.