Commonwealth Bank cuts loan rates
03 July 2015 by News Desk
The Commonwealth Bank in Australia has lowered its home loan assessment rate.
The H.L.A.R. is used to determine if a customer can afford to service a property loan if rates rise to 7.4%. Now the Bank has cut this to 7.25%.
But while this is a small help to those seeking a home loan the Bank has also toughened other requirements for owner occupiers and will now only allow maximum loan-to-value borrowings of 95%.
The mortgage assessment rate applied by each lender varies but is normally between 1% and 2.5% above the national variable rate.
