CBA Cuts Max LVR To 90% For Investment Home Loans

Property investors looking to take out home loans through the Commonwealth Bank (CBA) may now need to save larger deposits, after the bank cut its maximum loan-to-value-ratio (LVR) from 95% to 90%.

This means they will have to front up at least 10% in cash and/or equity in existing property holdings in order to take out an investment home loan with CommBank.

For example, a $300,000 investment home loan will now require a $30,000 cash deposit rather than a $15,000 deposit.

Alternatively, property investors could utilise equity in their existing property holdings to offset the LVR requirements.

The change is solely aimed at property investors, and will not affect loans for owner-occupiers, who will still be able to take out home loans at 95% LVR.

The news comes in the wake of warnings from the Australian Prudential and Regulation Authority (APRA) that they would intervene if any banks breached their 10% annual growth limit for property investment lending.


Commonwealth Bank Executive General Manager of Home Buying, Dan Huggins, said the bank is “constantly reviewing” their home loan portfolio.

“Today’s change will enable us to meet our customers’ needs, while further strengthening our high quality home loan business and ensuring we continue to meet our responsible lending and regulatory obligations,” Huggins said.

The change follows a month after Commonwealth Bank’s announcement that it would not accept any more applications for refinancing investment home loans through intermediaries until further notice.


The bank also recently raised interest rates on interest only investment home loans by 12 basis points.

This happened after it announced a record-high profit for the first half of the financial year, having increased their statutory net profit by six per cent to $4.9 billion.

Maximum LVRs with other lenders

CBA is far from the only bank to have a maximum LVR limit of less than 95% on its home loan products. Around one third of all home loan products on Canstar’s database have a maximum LVR of less than 95%.

Out of the standard investment home loans offered by the ‘big four’ banks, LVR restrictions range from 90% to 80%.

ANZ’s and NAB’s investment products have a maximum LVR of 90%, while Westpac’s have an 80% LVR restriction.

Some ANZ Investment Home Loans

Home Loan Product Max LVR
Breakfree Investment Fixed 2 yrs 150k+ 90%
Breakfree Investment Fixed 3 yrs 150k+ 90%
Breakfree Investment Variable 250-499k 90%
Investment Fixed 2 yrs 90%
Investment Fixed 3 yrs 90%
Investment Simplicity Plus 90%
Investment Variable 90%

Some NAB Investment Home Loans

Home Loan Product Max LVR
Choice Package Inv Standard Fixed 2 yrs 150k+ 90%
Choice Package Inv Standard Fixed 3 yrs 150k+ 90%
Choice Package Investment Tailored Variable – P&I 250-499k 90%
Inv Standard Fixed 2 yrs 90%
Inv Standard Fixed 3 yrs 90%
Investment Tailored Variable – P&I 90%

Some Westpac Investment Home Loans

Home Loan Product Max LVR
Investment Fixed 2 yrs 80%
Investment Fixed 3 yrs 80%
Investment Flexi First Option P&I 80%
Premier Advantage Investment Fixed 2 yrs 150k+ 80%
Premier Advantage Investment Fixed 3 yrs 150k+ 80%
Premier Advantage Rocket Investment Loan P&I 250-499k 80%
Rocket Investment Loan P&I 80%

If you are considering refinancing or are in the market for a home loan, yet desire a higher LVR, see the comparison table provided below which features current low rate home loans available from providers with a LVR of 95% or higher. Please note that this table has been formulated based on a $600,000 loan for properties in NSW with links direct to the providers websites.


Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. If you decide to apply for a home loan, you will deal directly with a financial institution not with Canstar. Rates and product information should be confirmed with the relevant financial institution. Home Loans in the table include only products that are available for somebody borrowing 80% of the total loan amount. For product information, read our detailed disclosure, important notes and additional information. Read the comparison rate warning. The results do not include all providers and may not compare all the features available to you. Canstar may earn a fee for referral of leads from the comparison table. See how we get paid.

The Star Ratings in this table were awarded as per our most recent rating. View the Canstar Home Loan Star Rating Methodology. The Star Rating shown is only one factor to take into account when considering a product.

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