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]