2/343 Newcastle St Northbridge WA 6003

Commonwealth Bank Changes interest only loans

From Monday 22 May 2017 the following changes apply.

Reduced discounts for new Owner Occupied / Investment Home Loans with Interest Only payments
 

We are reducing the discounts offered in the Home Loan Pricing Tool (HLPT) for new Home / Investment Home Loans with IO payments. 
If you submit a pricing request for a new Home / Investment Home Loan with P&I repayments, and then switch the repayment type to IO before loan funding, the discount will no longer apply. 


$1250 Refinance Rebate for select Interest Only Owner Occupied Home Loans ends
 

The $1250 Refinance Rebate for select applications, will only be available for Owner Occupied Principal & Interest Home Loans via the HLPT. It will no longer be available to Owner Occupied Home Loans where IO payments are selected.


From Saturday 10 June 2017 the following changes apply.

LVR Changes
 

We are reducing the maximum LVR from 95% to 80% for new Owner Occupied, and from 90% to 80% for new Investment, home loan applications with IO payments. 
We will honour the existing policy for applications submitted for assessment by COB Friday 9 June 2017.


Changes to Repayment Types for Building / Construction Loans
 

We will no longer accept IO payments for Home / Investment Home Loans which are construction / building loans. These loans must have P&I repayments after construction is complete and the loan has fully funded.
We will allow construction loan applications submitted for full assessment by COB Friday 9 June 2017 with IO payments to proceed to funding.
Reminder: Repayments on P&I construction loans are interest only until the building is completed and the loan fully funds, at which point repayments switch to P&I. This change means that we will apply the lower P&I reference rate to the interest charged during the construction period. 
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Disclaimer: The articles featured are not to be considered as personalised advice.  Please contact Tick Finance directly to discuss your financial situation.

Tick Finance does not accept liability for the results of any actions taken or not taken due to the information supplied in this blog.

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