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Investors cop another hit

AUSTRALIAN property investors are set to be hit again as the nation's largest bank tightens the screws on investment lending.

Investors will be forced to stump up larger deposits to buy property after the Commonwealth Bank revealed it will be reducing the maximum loan-to-value ratios from 95 to 90%.

This means borrowers must have a 10% deposit instead of 5% which was previously allowed to buy an investment property.

These changes are effective immediately and will not impact owner occupiers.

The bank's executive general manager of home buying, Dan Huggins, said the move would help the bank to "meet customers' needs while further strengthening our high quality home loan business and ensuring we continue to meet our responsible lending and regulatory obligations.”



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