Ian Narev insists the Commonwealth Bank is trying to do more to build the trust of its customers.
AUSTRALIAN property investors are set to be hit again as the nation’s largest bank tightens the screws on investment lending.
Investors will be forced to stump up larger deposits to buy property after the Commonwealth Bank revealed it would reducing the maximum loan-to-value ratios from 95 to 90 per cent.
This means borrowers must have a 10 per cent deposit instead of five per cent which was previously allowed to buy an investment property.
This means for a $300,000 property investors will now need to provide a $30,000 deposit instead of previously a $15,000 deposit.
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These changes are effective immediately and will not impact owner occupiers.
The bank’s executive general manager of home buying, Dan Huggins, said the move would help the bank to “meet customers’ needs while further strengthening our high quality home loan business and ensuring we continue to meet our responsible lending and regulatory obligations.”
The announcement comes a month after the Commonwealth Bank announced a record first half cash profit.
The bosses of Commonwealth Bank and ANZ are facing another round of questioning before MPs.