CBA tightens the reins on investor lending
CBA has tightened its rules around investor lending again, while Bankwest increases investor rates.
After it ceased investor loans for new mortgage broker customers last month, this week Commonwealth Bank made more changes to investor loan requirements. According to the AFR, this member of the big four banks has changed the maximum loan-to-value ratio (LVR) on all its investor loans, which means investors will need a higher deposit.
Investors can now borrow a maximum 90% LVR, whereas previously the maximum LVR was 95%.
“To ensure we can support the needs of our existing customers, we will continue to limit investment lending to new bank customers,” Dan Huggins, CBA’s executive general manager home buying told the AFR.
The changes won’t just apply to a standard investment loan. Customers who wish to take out an investment loan alongside an owner occupier loan will also need a larger deposit, according to the AFR.
CBA wasn’t the only bank to make changes this week. Just like the last time CBA changes were announced, its subsidiary Bankwest also made changes. As of today, Bankwest increased its investor loan rates by 0.15% across its fixed rate and variable loan range.