CBA to stop low doc loans
Staff reporterDecember 7, 2020
CBA, the nation's largest residential property lender, is set to cease its low documentation products.
The bank is removing low doc products for all home owner, investment loan and line of credit applications.
Low doc were aimed at self-employed and small business owners who may not have access to the financial statements and tax returns usually required when applying for a home loan.
"From September we will be streamlining our suite of products to deliver a simplified and competitive range," the spokesman told The Australian Financial Review.
Other products to be removed include the one-year guaranteed rate, seven-year fixed rate, 12 month discounted variable rate, rate saver, three-year special rate saver and no fee loans.
The changes, to start September 29, follow a decision to spin off its wealth management and mortgage broking business along with overhauling the way it rewards mortgage brokers to emphasise "value rather than volumes."
Brokers account for about 43 per cent of CBA's mortgage flows, compared with ANZ's 56 per cent, Westpac's 46 per cent and National Australia Bank's 42 per cent, according to recent independent analysis by Morgan Stanley.