Major bank joins spate of lenders changing mortgage terms

By Reporter 19 July 2019 | 1 minute read

One of the nation’s biggest lenders has adjusted its loan serviceability conditions in response to guidance from the banking regulator. 


The Commonwealth Bank of Australia has lowered its interest rate floor for serviceability assessments on its home loan offerings. 

CBA has reduced its rate from 7.25 to 5.75 per cent, which will be effective from this coming Monday, 22 July, on all new home loan applications. 

This move is in response to the banking regulator easing its guidelines on loan serviceability, allowing lenders to choose their buffers and interest rate floors. 

CBA is the third of the majors to adjust its rates so far. ANZ and Westpac announced their changes last week, followed by non-majors like Macquarie and Suncorp this week.


As reported earlier this week, Smart Property Investment and sister title Mortgage Business understand that NAB is currently reviewing its rates in response to APRA’s guidance changes. 

The state of play with mortgages

Broadly speaking, property experts believe access to finance has become easier in 2019, largely due to moves from APRA. 

Most notably so far was APRA’s removal of its restrictions on interest-only loans, which was lifted at the beginning of the year.

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Major bank joins spate of lenders changing mortgage terms
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