CBA Tightens Home Loan Approval Criteria for Foreign Investors
As per the latest announcement made by Commonwealth Bank Australia, the rules will be stricter from now for foreigners regarding home loan approvals.
In the announcement, it is clearly mentioned that the bank is not going to approve all such loan applications that includes self-employed foreign income. Apart from it, the bank also stops accepting foreign-currency income of temporary Australian residents.
According to a CBA statement, “Home loan applications from foreigners make up a “significantly low proportion of our total home loan applications. We constantly review and monitor our home loan portfolio to ensure we are maintaining our prudent lending standards and meeting our customers’ financial needs”.
Principal at Ocean Home Loans, Brad Kirwan said, “The fact that home loans for foreigners make up a relatively small segment of the market means CBA’s new policy should not have major consequences for mortgage brokers. Self-employed foreign investors are an even smaller part of that market. Most lenders won’t accept foreign self-employed income anyway – I’d suggest that CBA are aligning their policy with the other major banks so as not to be over-exposed to one particular type of applicant”.
News Source: http://www.brokernews.com.au/news/breaking-news/commonwealth-bank-tightens-criteria-on-home-loans-for-foreigners-214812.aspx