Powered by MOMENTUM MEDIA
Broker Daily logo

Major bank announces investor lending change

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.”

 

 

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.