Following on from Commonwealth Bank of Australia’s (CBA’s) recent lending changes, further details have emerged about the lender’s newly launched Postcode Lookup Tool and its more granular credit policies.
In a note released on 28 November, CBA revealed it will bring in the following policy changes to specific postcodes:
- Reducing the maximum LVR without LMI from 80% to 70%
- Reducing the amount of rental income and negative gearing eligible for servicing
- Changing eligibility for LMI waivers including all professional packages and LMI offers
The launch of the Postcode Lookup Tool allows brokers to have a more informed and open conversations with their clients, a CBA spokesperson told Australian Broker
“Every postcode is different and the new tool will help brokers better understand policies that may apply in different regions for different property types.”
The bank will continue to lend in all regions and postcodes across the nation, they said, adding that all changes were made to ensure responsible and appropriate lending standards are maintained.
“The new tool provides brokers with increased transparency of the various policies which apply to assist customers with their home lending needs.”
Effective from 4 December, these changes have been made in the proprietary and third party channels with the Postcode Lookup Tool available for use in both.
The bank’s lending policies, including LMI waivers and professional packages, remain the same outside of these specified postcodes.
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