Powered by MOMENTUM MEDIA
Broker Daily logo

CBA changes automated valuations

The nation’s largest lender alerted mortgage brokers this week about new changes to its thresholds for attaining up-front valuations.

On Friday CBA enhanced its RP Hub Automated Valuation Model (AVM) limits, and increased the threshold limit to obtain an external valuation based on the Owner’s Estimated Value (OEV) and Purchase Price.

The AVM availability for houses and units increased from $1 million to $1.5 million for properties in selected postcodes. The RP Hub will automatically determine the availability of AVMs.

CBA increased the threshold for OEVs and purchase price limits from $2 million to $3 million.

==
==

The changes comes as strong house price growth in recent years has seen fewer properties selling for under $1 million, particularly in Sydney and Melbourne.

“Commonwealth Bank has changed the limits and thresholds for attaining up front valuations. These changes were made to enhance the process for our proprietary lenders and mortgage broking partners,” a CBA spokesperson said.

“This does not represent any changes to our strict lending policies.”

[Related: CBA clarifies rate changes]

More on Lender
08 November 2024
ANZ has continued to be the top supporter of brokers among the majors, with broker flows hitting record highs and the ...
08 November 2024
The major bank’s new loans originated from the third-party channel have dipped amid a competitive market.
07 November 2024
With the number of brokers now totalling around 21,000 across the country, the industry has never been bigger.