Commonwealth Bank puts a stop to refinancing investment home loans
THE nation’s largest lender, Commonwealth Bank, has made a drastic move to put the brakes on investment lending.
In a decision that is set to see many other lenders industry wide follow, the bank announced today it would be stopping the acceptance of any new refinance applications for investor loans from Monday February 13.
It comes just a day after the lender’s subsidiary bank, Bankwest, announced it would no longer accept applications from would-be customers who planned to refinance investment property loans from other lenders.
In a notice sent to mortgage brokers, CommBank said they are “committed to consistently delivering the best customer experience for home buyers, upholding the highest level of professional standards, and meeting our responsible lending and regulatory obligations”.
“To ensure we continue to meet our commitments, from Monday 13th February we will be suspending the acceptance of new refinance applications for Investment Home Loans, until further notice,” it said.
Investment home loans represent 35 per cent of CBA’s mortgage lending.
However applications that are not refinances for investor and owner occupier loans will not be impacted.
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