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CBA CEO Warns of Risks from Surging Home Loan Demand

Assessing the Impact of High Mortgage Demand on Australia's Economy

CBA CEO Warns of Risks from Surging Home Loan Demand?w=400

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Matt Comyn, CEO of the Commonwealth Bank of Australia (CBA), has raised concerns about the nation's high demand for home loans, suggesting that the current growth rate may be unsustainable and could impact long-term financial stability and housing affordability.

Speaking at a parliamentary hearing, Comyn noted that while the bank benefits from the surge in housing credit, a lower growth rate would better support financial stability and equality in housing market access. He pointed out that current credit growth rates may exceed what regulators find sustainable.

According to the Australian Bureau of Statistics, new loan commitments for dwellings rose by 6.4% in the third quarter of 2025. The Reserve Bank of Australia also noted that total housing credit growth has surpassed post-global financial crisis levels, driven by increased investor activity fueled by low interest rates.

CBA led mortgage growth among Australian banks, increasing its mortgage portfolio by 6% to AU$664.7 billion in the fiscal year ending June 30. Despite the high demand, Comyn expects a cooling in housing demand due to subdued expectations for interest rate cuts, projecting the cash rate will likely stay at 3.6% through 2026 because of persistent inflation.

For prospective homebuyers and investors, this cautionary stance suggests the need for careful consideration of market conditions and potential future shifts in interest rates and lending policies.

Published:Saturday, 22nd Nov 2025
Author: Paige Estritori

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