CBA Cuts Investor Loan LVR

Commonwealth Bank of Australia (CBA) 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 at CBA, 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.”

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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