Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

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.

Advertisement
Advertisement

“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 regulator didn’t appeal the decision of the Westpac expenses case due to the “economic and health crisis”, the former deputy chair...

The Reserve Bank of New Zealand has lifted the benchmark interest rate to 2 per cent, as it tries to get a handle on surging inflation. ...

The central bank’s assistant governor has reflected on when supply will meet demand, noting that while lowered prices are due, it is u...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.