Quoting the "increasingly volatile economic climate and rising unemployment levels" the CBA has further tightened its credit policy.
Effective today, the CBA has decreased its maximum LVR to 90%, excluding LMI, for all customers who do not have current credit facilities with the bank.
This includes any customers who have a CBA loan, line-of-credit or credit card which has been funded for 6 months and has no arrears or missed payments.
In addition, the bank has installed a mandatory 5% - increased from 3% - genuine savings for new borrowers where the LVR is greater than 85%.
The genuine savings excludes the First Home Owners Grant, additional borrowed funds or the proposed sale of an asset, and may comprise of any of the following:
* A demonstrated saving pattern established over a 3-month period
* Gift - must be held in an account for a minimum of 3 months
* Term deposit - must have been held for a minimum of 3 months
* Cash - acceptable only if placed in an account for a minimum of 3 months
* Shares - must have been held for a minimum of 3 months
* Equity in existing property
Applications taken prior to the 30 March will be considered on a case by case basis under the relevant credit policy as at time of application.
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