All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.
CAR LOANS
AUSTRALIA
SHARE
Share this news item!
Commonwealth Bank Highlights Concerns Over Surging Home Loan Demand
Assessing the Impact of Increased Borrowing on Australia's Housing Market
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Commonwealth Bank of Australia (CBA), the nation's largest lender, has raised concerns about the current high demand for home loans, which is contributing to escalating property prices.
CEO Matt Comyn acknowledged that while the bank has benefited from the surge in housing credit, such high levels are unsustainable and could undermine long-term financial stability, housing equality, and market accessibility.
He suggested that a more moderate pace of credit growth would be beneficial.
Data from the Australian Bureau of Statistics revealed a 6.4% increase in new housing loan commitments in the third quarter compared to the previous quarter. This rising credit growth, particularly from investors, has been driven by low interest rates. CBA led the expansion in mortgage lending with a 6% increase to A$664.7 billion in the financial year ending June 30, 2025, while other banks saw around 5% growth. However, Comyn anticipates demand may ease due to expectations that interest rates will remain at 3.6% through 2026, as inflation remains elevated.
For potential homebuyers and existing mortgage holders, this development underscores the importance of prudent financial planning. It's advisable to assess one's financial capacity thoroughly and consider the long-term implications of taking on substantial debt, especially in a market where property prices are rising rapidly. Consulting with financial advisors can provide tailored strategies to manage debt effectively and ensure financial stability.
Published:Friday, 12th Dec 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with an exemption for new housing developments. - read more
The Commonwealth Bank of Australia (CBA), the nation's largest lender, has raised concerns about the current high demand for home loans, which is contributing to escalating property prices. CEO Matt Comyn acknowledged that while the bank has benefited from the surge in housing credit, such high levels are unsustainable and could undermine long-term financial stability, housing equality, and market accessibility. He suggested that a more moderate pace of credit growth would be beneficial. - read more
Welcome to Car Loans Australia, a proud member of the Financial Services Online network. Owned and operated by Clark Family Pty Ltd, A.C.N. 010 281 008, we are dedicated to helping Australian individuals and businesses find the best financial products, services, information, and advice available online.
calculatorWidget
knowledgeBaseWidget
Our Commitment
At Car Loans Australia, we do not endorse specific financial products or offer financial advice. Instead, we connect you with specialist financiers, insurers, or other financial advisors who can provide expert guidance based on your unique circumstances. Please note that Car Loans Australia may receive a fee or commission for these referrals.
Information and Guidance
The financial information on our website, including articles and news items, is intended for general informational purposes only. It should not be considered a substitute for professional advice. We strongly recommend consulting a qualified, licensed financial advisor to discuss your specific situation before making any financial decisions.
Connecting You with the Right Solutions
Our primary role is to facilitate connections between you and the right financial resources. Whether you need a specialized financier or an expert advisor, we aim to introduce you to professionals who can help you achieve your financial goals.
Contact Us
We are here to assist you with any questions or further information you may need. Please feel free to reach out to Car Loans Australia for assistance.
