Apr
18

Commonwealth Bank Latest to Tighten Mortgages to Foreigners

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  • Offshore income will not be accepted for mortgage applications
  • Maximum loan at 70% of home value for temporary residents

Commonwealth Bank of Australia, the country’s largest mortgage lender, has tightened criteria for home loans to foreigners just as the central bank warned buying by Chinese posed an “indirect risk.”

Commonwealth Bank, which accounts for one in every four mortgages in the country, will no longer approve applications that cite self-employed foreign income, it said in a note to mortgage brokers dated April 18. The lender will also not accept the foreign-currency income of temporary Australian residents, who can now only borrow up to 70 percent of the value of a property compared with 80 percent earlier, it said…

Commonwealth Bank Latest to Tighten Mortgages to Foreigners

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