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Commonwealth Bank Raises Alarm on Unsustainable Home Loan Demand
Assessing the Impact of Elevated Mortgage Demand on Australia's Housing Market
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The Commonwealth Bank of Australia (CBA), the nation's largest lender, has recently voiced concerns regarding the escalating demand for home loans, suggesting that this surge may be contributing to unsustainable property price increases.
CEO Matt Comyn highlighted that while the bank benefits from the current housing credit boom, a more moderate growth rate would better support long-term financial stability and housing affordability.
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 uptick is largely driven by investor activity, spurred by low interest rates and favorable market conditions. 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.
Comyn anticipates that demand may ease due to expectations that interest rates will remain at 3.6% through 2026, as inflation remains elevated. He emphasized the importance of sustainable credit growth to maintain market stability and prevent potential financial imbalances.
For prospective homebuyers, this development underscores the need for careful financial planning and consideration of market conditions. Engaging with financial advisors or mortgage brokers can provide valuable insights and help navigate the complexities of the current housing market.
Published:Thursday, 18th 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 emerging risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
The Commonwealth Bank of Australia (CBA), the nation's largest lender, has recently voiced concerns regarding the escalating demand for home loans, suggesting that this surge may be contributing to unsustainable property price increases. CEO Matt Comyn highlighted that while the bank benefits from the current housing credit boom, a more moderate growth rate would better support long-term financial stability and housing affordability. - read more
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