CBA continues to reduce its exposure to interest-only home loans

PHOTO: Commonwealth Bank, the nation’s biggest home lender

Commonwealth Bank, the nation’s biggest home lender, continues to cut its exposure to interest-only loans.

In June 2018, 30% of their loan book was made up of interest only loans. By December 2018 it was 26% and now it is 22%.

Home loans arrears only nudged 0.01% higher to 0.68% from December to June.

The percentage of home loans in negative equity has jumped from 3.3% in June last year to 4.5%.

CBA chief executive Comyn says overall they feel like the housing market is starting to stabilise and may slightly improve from here.

“We see modest price increases and a modest increase in credit growth overall.

“We also believe that unemployment is likely to stay low.

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