Brighter Buying

Lenders leak confidential oversupply blacklist

by Karleen Jentz, Copywriter 30 March 2016

If you want to buy an inner city apartment with a whopping loan, you might find your lending conditions just got a whole lot tougher.

Apartments in more than 140 Australian suburbs are on a confidential finance blacklist which, according to Domain, is a secret no more.

It reports AMP Bank is one of several lenders that have circulated a list of postcodes where apartment buyers will face tougher finance terms. These may include maximum loan-to-value ratios of 70 per cent, increased scrutiny of your repayment ability, no access to mortgage insurance and refusal to consider rental guarantees as income. And if you want to buy more than two apartments in the one complex, think again. Ouch!

Queensland accounts for 73 of the 140 suburbs on the list, but north side buyers don’t need to worry. The Queensland postcodes are centred around the CBD and regional areas including some parts of Cairns and the Gold Coast.

Apartment blacklist suburbs in Brisbane include:

Postcode: 4000

  • Brisbane
  • Brisbane Adelaide Street
  • Brisbane Gpo
  • Brisbane city
  • Parliament House
  • Petrie Terrace
  • Spring Hill

Postcode: 4001

  • Brisbane

Postcode: 4002

  • City East
  • Wintergarden

Postcode: 4004

  • Spring Hill

Postcode: 4125

  • Munruben
  • Park Ridge
  • Park Ridge South

Postcode: 4127

  • Chatswood Hills
  • Daisy Hill
  • Priestdale
  • Slacks Creek
  • Springwood
  • Springwood Bc

Postcode: 4128

  • Kimberley Park
  • Logan Hyperdowm Bc
  • Shailer Park
  • Tanah Merah

Clearly we’re not the only ones facing increased lender scrutiny. The CBD areas of all capital cities made the list. Lenders are particularly cautious of larger unit developments of 10 or more apartments in areas where there are high volumes of newly completed stock.

There’s nothing like a lack of finance to take the heat out of a market.

View the full list of blacklist suburbs at Domain.