Home Stock & SharesBanks Commonwealth Bank cuts new home loan discounts

Commonwealth Bank cuts new home loan discounts

by Jonathan Adams

Commonwealth Bank has moved to further rebuild its profit margins by cutting the discounts on new home loan applications.

In a note to mortgage brokerson Monday, the country’s biggest home lender said it was cutting discounts by 15 basis points on two products — its mortgage advantage packaged owner-occupied and investment home loan applications.

Discounts were also cut by 8 basis points on other products, including the three-year special rate saver loan.

The note blamed increased funding and capital costs on the bank’s home lending portfolio.

A CBA spokesman said the bank constantly reviewed its home loan products and interests to ensure it was maintaining prudent lending standards and meeting customer needs.

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