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Commonwealth Bank stops combining credit card and mortgage applications

10 July 2017

CommBank stops bundling credit card and mortgage applications

The Commonwealth Bank has announced changes that will see it cease the bundling of home loan and credit card applications together, delivering further support its commitment to responsible lending.

Commonwealth Bank issued notice to mortgage brokers last Wednesday confirming that it will no longer bundle home loan and credit card applications together. Customers still have the choice to apply for a new credit card and a mortgage at the same time, but the bank will now assess the requests individually, with the mortgage application taking priority over the credit card application.

This move by CommBank is a proactive move toward more responsible lending processes as advocated by Treasurer Scott Morrison back in June. When he outlined four steps he planned to implement to reduce irresponsible lending and help reduce nationwide credit card debt. These proposals included higher minimum repayments, stricter application assessments and easier credit card application.

CommBank has also scrapped its “highest income earner” rule, which means that couples applying for a credit card will be assessed on their individual income, liabilities and shared living expenses.

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