Australia's Commonwealth Bank of Australia joins its counterparts to ease the rules on mortgage lending

(Reuters) – Commonwealth Bank of Australia (CBA.AXOn Friday, he said he would ease the mortgage rules for his clients as of July 22, joining some of his "Big Four Peers" who have taken similar steps in an effort to revive a declining economy. speed.

CBA, the country's largest lender, has announced that it will introduce a new 5.75% floor rate and an interest rate buffer of 2.50%, as instructed by the Australian Regulatory Authority. (APRA) aimed at stabilizing real estate prices. CBA rates are currently 7.25% and 2.25%.

Earlier this month, the prudential regulator removed a 7% minimum interest rate for credit applications from bank customers.

"We welcome APRA's decision to update its guidelines for fitness for service ratings," CBA CEO Dan Huggins said in a statement.

Westpac Banking Corp (WBC.AX) and the Australian and New Zealand banking group (ANZ.AX) began this week to lower the interest rate used to submit loan applications for stress tests.

Following a prolonged slowdown in real estate, the Australian central bank has indicated that real estate prices are stabilizing and that APRA's credit relief measure is likely to increase borrowing capacity for many people. new customers.