National Australia Bank baulks at lending in Brisbane hot spots
ONE of the nation’s largest banks is pulling back on lending in parts of Brisbane and has red-flagged many suburbs as hot spots, concerned about high prices and lack of demand among renters
QLD News
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ONE of the nation’s largest banks is pulling back on lending in parts of Brisbane, the Gold Coast and regional Queensland, concerned about high prices and lack of demand among renters.
National Australia Bank has red-flagged many inner-city Brisbane suburbs as hot spots for lending and extreme caution must be taken before giving borrowers the tick of approval.
Local market performance, rental returns, rental vacancy rates and time on the market to sell have all been taken into consideration before these areas joined the list.
Home loan applicants will be forced to stump up minimum deposits of at least 20 or 30 per cent in many of these areas otherwise the bank will refuse to lend to them.
The newest suburbs to join the hit list are scattered throughout Brisbane’s inner-city suburbs including Bowen Hills, Fortitude Valley, Herston, Newstead, Albion, Chermside, Chermside West, Highgate Hill, South Brisbane, West End, Dutton Park and Woolloongabba — borrowers in these areas must have at least a 20 per cent deposit.
On the Gold Coast Labrador and Southport have been included and borrowers must also have a 20 per cent deposit.
A NAB spokeswoman said the bank was constantly monitoring market conditions across the country.
“We recognise that no two suburbs are the same and there are some geographic areas across Australia which have been impacted by local economic conditions,’’ she said.
“As a responsible lender, we adopt strategies in these geographic areas that seek to reduce the risk to our customers and our business.”
The bank can still lend in these areas but borrowers must in either Group A or Group B must have 20 or 30 per cent deposits respectively.
Existing customers will not be affected by the new listings.
Other areas to join the watch list are scattered throughout the state including Biloela, Mackay, Airlie Beach, Fraser Island and Charters Towers.
While many regional areas remain on the red-flagged list including Chinchilla, Miles, Gladstone, Blackwater, Emerald, parts of Mackay, Moranbah, Dysart, Middlemount and Bowen.
Home Loan Experts managing director Otto Dargan said the updated list highlighted NAB was being a “prudent lender.”
“I was not surprised to see NAB expand their inner city postcode listings in some cities including Brisbane ... there’s definitely an oversupply,’’ he said.
“First home buyers are the ones who will be most affected by having to save a 20 per cent deposit and it becomes somewhat unmanageable.’’
He said some other lenders will still allow customers to take out loans in these areas without restrictions.
The new postcode changes come into effect from Saturday, October 22.
NEW ADDITIONAL POSTCODES
(70 per cent Loan to Valuation Ratio) 4420, 4521, 4581, 4660, 4674, 4678, 4715, 4737, 4738, 4741, 4742, 4800, 4804, 4820.
(80 per cent LVR) 4006*, 4010, 4032, 4101, 4102, 4215.
EXISTING POSTCODES
4413, 4415, 4455, 4680, 4717, 4720, 4740, 4743, 4744, 4745, 4746, 4805, 4000*.
*Inner City Apartment postcode locations within these postcodes.
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