CBA lends $423bn to home owners
13 August 2015 by News Desk
The Commonwealth Bank of Australia has seen the value of its’ home loans rise to $423 billion in the past 12 months.
CBA, the biggest mortgage lender in Australia, saw a 6.6% increase in the total value of its loans to home owners in the past year, with broker-arranged loans making up 45% of new business. Across the country as a whole, the total value of home loans grew by 7.4% in the year to June 2015.
The Australian Prudential Regulation Authority recently took action in a bid to cool the booming housing market by introducing new limits on loans to property investors.
The new rules are starting to have an effect, but it could only be a short term fix, according to Commonwealth Bank CEO Ian Narev who says that rising demand and lack of housing supply in Sydney and Melbourne will continue to drive up prices for some time to come.
The CBA has reported profits of $9.14 billion for 2014/15 – a 5% increase.
