The Commonwealth Bank has responded to a “very high” demand for loans from first home buyers by extending a $1,000 rebate.
CBA announced on January 20 that the bank would offer first home buyers a $1,000 rebate for any application it received before March 31.
General manager of broker sales Sam Boer said the rebate had now been extended until May 31.
“The rebate is being extended because the take up by first-time buyers has been very high, which shows there is a genuine need for this sort of support,” he told The Adviser.
“We are very proud to be the only bank with such an offer in the market and it complements our existing offers, such as Property Share and Guarantor Support, which make it easier for first home buyers to take that first step into the property market.”
Property Share allows multiple customers to purchase one property using separate loan applications, while Guarantor Support allows parents to help their children secure a loan.
CBA announced in January that the $1,000 rebate was a response to the difficulties faced by first home buyers.
“Since the reduction of the various government incentives for first home buyers, the proportion of them entering the housing market has declined,” CBA said.
The rebate applies to loans of at least $100,000 with a maximum LVR of 90 per cent.
Customers must hold a CBA transaction account or Everyday Offset account, which is where CBA will send the rebate.
CBA has told brokers to identify eligible applicants by writing “Customer is eligible for the $1,000 first home buyer rebate” in their application comments.