Australia's biggest bank

Australia’s biggest bank sounds the alarm on rapid surge in house prices | WATCH

PHOTO: In August, Australia property values soared by 18.4 per cent, marking the fastest annual growth since July 1989 when interest rates were at 17 per cent

  • Commonwealth Bank chief Matt Comyn ‘concerned’ about rising house prices
  • He conceded rising property values also meant surging and unmanageable debt
  • Australian property prices in August surged by an annual pace of 18.4 per cent

The boss of Australia’s biggest home lender has admitted he is worried about the rapid surge in house prices.

Commonwealth Bank chief executive Matt Comyn has become the first head of a major bank to raise the alarm about unsustainable debt levels as property values climb at the fastest pace in 32 years.

During a parliamentary hearing, Liberal MP Tim Wilson had asked him if he was concerned about mortgage stress, a situation where borrowers can’t meet their monthly home loan obligations.

Sydney property prices keep the Reserve Bank of Australia awake at night

The Reserve Bank of Australia cash rate is at a record-low of 0.1 per cent and Australia’s major banks are offering mortgage rates of just 2 per cent.

But Mr Comyn conceded he was worried about mortgage stress as more borrowers struggled to service their home loans.

Commonwealth Bank chief executive Matt Comyn has become the first head of a major bank to raise the alarm about unsustainable debt levels as property values climb at the fastest pace in 32 years

Commonwealth Bank chief executive Matt Comyn has become the first head of a major bank to raise the alarm about unsustainable debt levels as property values climb at the fastest pace in 32 years

Reserve Bank

Homeowners beware: Reserve Bank of Australia issues a chilling warning that will have all mortgage holders worried

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