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Major bank announces investor lending change

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. 

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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.”

 

 
Major bank announces investor lending change
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Annie Kane

Annie Kane is the editor of Mortgage Business.

As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also a regular contributor to the Mortgage Business Uncut podcast.

Before joining Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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