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Lender announces new policy for investor loans

by James Mitchell4 minute read
CUA

An Australian lender has announced an LVR cap on all of its new investor home loans as it continues to manage its investor loan growth.

On Friday CUA confirmed that for any investor home loan applications submitted from today, a maximum LVR of 70 per cent will apply.

“This change means a consistent maximum LVR now applies across all of CUA's variable and fixed rate investor loans,” CUA said in a statement.

“A maximum LVR of 70 per cent has applied since July 2015 for residential investors taking out the CUA Fresh Start Variable Home Loan.”

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CUA highlighted that it has already taken a number of steps to slow its growth in investor lending, including the introduction of investor interest rates, and a review of their maximum LVR for investor loans earlier this year.

“While these actions are helping to slow investor lending, it's important that CUA continues to proactively manage our investor growth,” the group said.

“There is no change for new or existing owner-occupier home loan customers. Any customers with an existing CUA investor home loan will not be affected by these LVR changes on home loan rollovers or product switches.”

CUA said residential investor home loan applications submitted before today will be assessed under the existing LVR rules.

[Related: CUA chief says demand for home loans is slowing]

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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