The Commonwealth Bank has blamed the government's First Home Owners Grant (FHOG) boost for its decision to withdraw its zero deposit product.
Effective 1 December, the lender will pull its zero deposit home loan from the market.
Speaking to BN last week, a spokesperson for the bank said the move was in line with the CBA's commitment to responsible lending practices in turbulent economic times.
However more recent communiqu‚ outlining the move to brokers blamed the decision on the government's FHOG boost.
"This increase in federal government assistance, plus additional grants from some state governments, lessens the need for first time buyers to borrow 100% of the purchase price of the property," it stated.
CBA to "quarantine" zero deposit loans
Are brokers paying for CBA 'mistakes'?