A big four bank has informed its mortgage brokers and proprietary lenders of changes to a number of home loan products.
Mortgage Business understands that CBA has not raised or lowered its headlines rates, but has made changes related to a reduction in discounts on a select number of variable rate home and investment home loan products.
The bank is reducing discounts by up to 15 basis points on new Mortgage Advantage Packaged owner-occupied and investment home loan applications through its Home Loan Pricing Tool.
Discounts are also being reduced by 8 basis points on CBA’s Three-Year Special Rate Saver, Extra Life of Loan and Extra Introductory Rate products for new owner-occupied and investment home loan applications.
The reduced discount rates apply to new home loan applications for these products only from 26 August and apply to all new applications from both CBA’s proprietary and mortgage broker channels.
“Commonwealth Bank constantly reviews our suite of home loan products and interest rates to ensure we are maintaining our prudent lending standards and meeting our customers’ financial needs,” a Commonwealth Bank spokesperson said.
“For new applications, we are reducing discounts on the specials of selected products and packages. These changes are required due to increased funding costs, capital requirements and our continued focus on balancing the needs of customers and shareholders.”
[Related: CBA 'stifling competition', says Acorns]