Login
ISCOVER
First home buyers will need to contribute at least 3 per cent of the purchase price in their own money – on top of any government grants – should they want to secure a CBA mortgage.
The new structure, reported in today’s The Australian, is a result of growing concerns about the quality of loans to first home buyers and in anticipation of rate hikes in the years ahead.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Of concern to CBA, the paper said, was that the beefed-up first home owners grant meant that some first home buyers could purchase a dwelling with a 5-10 per cent deposit with no cash contributions of their own.
“Customers who have some skin in the game in terms of their own funds are more committed to continue their repayments," Ross McEwan, CBA group executive retail banking services, said.
