Major lender Commonwealth Bank (CBA) has announced to brokers it will be removing its low-doc feature from all new home loan and line of credit applications.
The move comes in a bid to simplify its product to ‘align with customer needs’. It does not mean CBA will stop accepting customers with alternative forms of documentation.
The major lender has also announced the removal of six other products, as follows: 1 Year Guaranteed Rate, 7 Year Fixed Rate, 12 Month Discounted Variable Rate, Rate Saver, 3 Year Special Rate Saver and the No Fee Variable Rate.
The changes will come into effect on 29 September and any applications for these products submitted before then must reach formal approval by close of business 28 September.
Customers with existing loans under these products will not be affected, however there may be changes if they wish to top up.
Customers wanting to top up their 1 Year Guaranteed Rate, 7 Year Fixed Rate or a 12 Month Discounted Rate Home Loan must switch to another product that suits their needs. An early repayment adjustment and an administrative fee may apply on the 1 Year Guaranteed Rate and 7 Year Fixed Rate in this case.
Customers can continue to top up applications for Rate Saver, 3 Year Special Rate Saver and No Fee Home Loans.
If a customer wants to top up an existing home loan or line of credit with the low-doc feature, they must provide full financials for all new applications.
A CBA spokesperson said: “At the Commonwealth Bank, we constantly review and monitor our suite of home loan products and services to ensure we are maintaining our prudent lending standards and meeting our customers’ financial needs.
“From September onwards, we will be streamlining our suite of products to deliver our customers a simplified and competitive range of home loan solutions.
“Our product suite offers attractive Standard Variable Rate and Fixed Rate options. Our Extra home loan products offer customers low interest rates, no monthly fees, and no establishment fees.
“Whatever our customers’ needs, our network of brokers or home lending specialists can help them find a flexible mortgage and guide them through the entire home buying journey, providing support every step of the way.”