The situation of an unaffordable home loan being granted to a Sudanese family in Melbourne, in which a nine-year-old girl acted as an interpreter for her family, has been described as 'an aberration' by the Commonwealth Bank.
The Commonwealth's Nick Fernando has told a Federal Parliamentary Committee the family involved has since been approached by the bank.
Meanwhile the Australian Bankers Association says the number of people defaulting on their home loans has fallen in the last 12 months.
The Association's Nick Hossack claims borrowers who can't make their home loan repayments are more likely to have their homes repossessed by non-bank lenders rather than traditional banks due to the fact that non-bank lenders have a higher rate of defaults and are likely to repossess more quickly.