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. |
