Powered by MOMENTUM MEDIA
subscribe to our newsletter
CBA changes automated valuations

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]

CBA changes automated valuations
mortgagebusiness

Latest News

The financial services royal commission and the Productivity Commission inquiry into competition in the Australian financial system will lik...

The Reserve Bank of Australia has sought to address the dispute over the cause of the recent drop in property prices. ...

COBA has renewed calls for a “proportionate” regulatory regime that doesn’t “squeeze out” smaller lenders. ...

FROM THE WEB
podcast

LATEST PODCAST: The federal court system v HEM, a new government-backed SME fund

Is enough being done to ensure responsible lending?