CUA will temporarily pause accepting investor lending applications

Credit Union Australia (CUA) has said it will temporarily pause accepting investor lending applications until further notice, including applicants refinancing from other financial institutions.

The changes will temporarily apply to all applications for new investor loans, and will impact applicants who have lodged investor applications that do not yet have pre-approval, conditional approval or full approval.

Chief Operating Officer, Member Services, Andy Rigg said that CUA had seen a sharp increase in investor lending volumes in recent weeks, driven by CUA’s competitive loan offers and market conditions.

“We have been closely monitoring our year-on-year investor lending balance growth to ensure that we continue to lend prudently while remaining within the 10% regulatory growth benchmark,” he said.

“We have observed an increase in new investor applications, particularly in response to some of the actions taken by other lenders to slow their investor growth.

“In response to the continued growth in our investor lending and forward projections of this growth, we’ve taken the decision that we need to temporarily pause new investor lending.”

Those applicants impacted by the change are being contacted directly by CUA.

The decision is part of a coordinated strategy by CUA to manage investor lending growth and follows other recent changes that CUA has made to interest rates and loan-to-valuation ratios. CUA is one of a number of lenders that have recently taken similar steps to restrict new lending to investors.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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