The Commonwealth Bank of Australia (
CBA) has tightened the assessment criteria for its home loan/credit card bundles.
The changes, which came into effect on 3 July, mean that the bank’s credit team will now assess the home loan first and then the credit card based on the individual’s remaining service capacity. Previously, these amounts would be looked at together in total.
“We have made changes to the credit card process to further support our commitment to responsible lending,” the bank wrote in a note released to brokers. “The credit card application will now be processed independently based on the financials provided in the home loan application.”
For joint applicants, CBA will no longer accept the ‘highest income earner’ rule. Instead each applicant will be assessed on their individual income, liabilities and share of living expenses.
Related stories:
Major hikes IO rates by 30 basis points
Major bank upgrades serviceability criteria
CBA tops home loan satisfaction amongst majors
