CBA's tighter home loans 'a Choice move'
Australian consumer watchdog Choice has thrown its weight behind a new policy from the CBA that will tighten up home loan approval criteria.
The bank has announced that all new first-home buyers will need to stump up three per cent of a property’s price tags on top of any subsidies such as the first-home buyers grant.
Speaking to ABC, Choice spokesperson Christopher Zinn said that the new measures would allow first-home buyers to pay off their variable rate home loans quicker.
“[Banks] should avoid situations where they tangle particularly first home buyers in loans that are too high and don’t allow for the possibility of rate changes,” he said.
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