Friday, 19 May 2017

Interest only, low deposit loans going way of dodo?

One of the major players in Australian banking, The Commonwealth Bank, has reportedly announced tougher requirements for those looking for an interest only loan.  At this point it seems to be directed at new customers but will likely have implications for those looking to hit the construction phase soon.

To put it in simplified terms, as I understand, new construction will be almost impossible to fund on an interest only basis past the actual building phase, deposits of twenty percent will be required for interest only loans that previously were five percent deposit: