CommBank cuts is discount mortgage offerings

CommBank cuts is discount mortgage offerings
CommBank cuts is discount mortgage offerings

Australia’s biggest home loan lender, Commonwealth Bank, has scaled back the discounts offered on new home loans.

The Australian Broker website says it did so as it faces increased funding pressures.

The website obtained a memo sent to the broking industry in which the major lender announced it will be reducing discounts by up to 15 basis points on new Mortgage Advantage Packaged Owner Occupied and Investment Home Loan applications.

The bank advised it was not raising or decreasing its headline rates.

The changes only related to a reduction in discounts on a select number of variable rate home and investment home loan products.

The discounts were also being reduced by 8 basis points on its Three-Year Special Rate Saver, Extra Life of Loan and Extra Introductory Rate products for new owner occupied and investment home loan applications. 

The reduced discount rates apply to new home loan applications for these products from 26 August 2016.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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