Commonwealth Bank of Australia informed mortgage brokers on Friday of changes that will mean new borrowers’ existing debts and their incomes are assessed more stringently.
CBA will apply a “servicing loading” of 20 per cent to all repayments on existing home loans and lines of credit held by customers.
…It will accept only 80 per cent of income from overtime, bonuses, and investment income when it is assessing home and investment loan applications.
…for all new investment loans with a loan-to-valuation ratio above 90 per cent, the bank will not consider the tax breaks borrowers receive from negative gearing…the maximum loan-to-valuation ratio for all owner-occupied home loan applications would be 95 per cent.
Down from 97%. Macroprudential tightening is here, one bit at a time.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.