In breaking news CBA and their subsidiary Bankwest released communications today that they will no longer accept applications for refinance of investment loans as of Monday 13th February.
This does not impact mixed purpose refinance applications (owner occupied and investment).
CBA Group have aggressively targeted investment lending over the past 6 months offering significant interest rate discounts and refinance incentives to grow market share. Communications were issued by the bank last week advising rate discounts and refinance rebates for investment lending would no longer apply.
It appears concerns may have been raised as to whether the bank has exceeded APRA’s recommended 10% per annum growth in the investment lending space.
Head of Retail CBA’s Matt Comyn issued a statement yesterday advising the bank had not breached its 10 per cent growth cap but referred to “regulatory commitments”:-
“Commonwealth Bank has remained below APRA’s 10 per cent investment lending growth threshold since it was announced in December 2014. We remain focused on meeting our regulatory commitments and on ensuring the long-term sustainability of the Australian home loan market,” he said.
Appears the bank is being cautious as investment lending policies across all banks and second tier lender tightens.
Linda Hamilton, Lending & Finance Partner, Paris Financial
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