(Australia) – The Commonwealth Bank of Australia has announced a deal with mortgage lender Bluestone to refer rejected mortgage applicants.Applicants regarded as too high risk by the CBA will be referred to Bluestone, which will pay the CBA a commission for each referral.
The CBA also hopes to retain these applicants as customers for its other services.
The so-called “non-conforming” mortgage market of borrowers who don’t meet bank lending criteria is believed to be worth up to A$600 million a year.
The CBA’s annual mortgage lending is around A$20 billion.