(Reuters) – Commonwealth Bank of Australia said on Wednesday it will refinance loans for select borrowers with a 1% serviceability buffer who fail to meet the industry standard of 3% as high interest rates render home owners incapable of repaying loans.
The country’s prudential regulator also advised banks to extend loans to customers only if the bank believed they can repay them at three percentage points higher than current market rates.
(Reporting by Sameer Manekar in Bengaluru; Editing by Nivedita Bhattacharjee)
