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CBA lifts limits on up-front vals

by James Mitchell8 minute read
The Adviser

The nation’s largest lender has changed its thresholds for attaining up-front valuations in an effort to streamline home lending for brokers.

On Friday CBA enhanced its RP Hub Automated Valuation Model (AVM) limits, and increased the threshold limit to obtain an external valuation based on the Owner’s Estimated Value (OEV) and Purchase Price.

The AVM availability for houses and units increased from $1 million to $1.5 million for properties in selected postcodes. The RP Hub will automatically determine the availability of AVMs.

CBA increased the threshold for OEVs and purchase price limits from $2 million to $3 million.

The changes comes as strong house price growth in recent years has seen fewer properties selling for under $1 million, particularly in Sydney and Melbourne.

“Commonwealth Bank has changed the limits and thresholds for attaining up front valuations. These changes were made to enhance the process for our proprietary lenders and mortgage broking partners,” a CBA spokesperson said.

“This does not represent any changes to our strict lending policies.”

[Related: CBA clarifies rate changes]

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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.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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