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CBA tightens FHB deposit rules

by Staff Reporter7 minute read
The Adviser

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.

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.

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