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30% deposit for home loans in 'risky' Gladstone

Discussion in 'Property Market Economics' started by TheSackedWiggle, 30th Sep, 2015.

  1. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    GLADSTONE residents could think twice before buying a home in the region, after a second bank announced it would ask for a 30% deposit for a home loan.

    Published on the Observer's website yesterday, NAB announced their decision on changing their 10% deposit requirement due to Gladstone being a 'mining town'.

    The NAB follows ANZ bank which, in July this year, also changed its policy; demanding all buyers cough up a 30% deposit for a mortgage through ANZ.

    The decision has left readers less than impressed, with some commenting on The Observer's Facebook page that this could put them out of the market.

    Terri Samuel is in the market for buying a home and said she was shocked when she found out how much money she needed to fork out for a deposit.

    "How on earth is anyone going to buy a house when they need a deposit like that ($135,000) ... If I had $135,000 as my deposit, I would buy a $1.3 million mansion on the Gold Coast where they still accept 10% deposits," she wrote.





    http://www.gladstoneobserver.com.au/news/nab-wants-30-deposit-in-policy-change-3-years-too-/2790595/
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    I get where they are coming from but seriously look at it from the lender's perspective - the lender is lending their money to people. House prices in gladstone have been copping it and going backwards.

    You can't really blame the lender for wanting to protect their backside. The other thing is even if you go with a lender that does the application at a higher LVR, the risk ratings will inevitably force credit to reduce the LVR.
     
  3. Greyghost

    Greyghost Well-Known Member

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    I think they are brave to even offer loans with 30% deposit..
     
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  4. bob shovel

    bob shovel Well-Known Member

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    Surely Gladstone should be off the list in the next year or two once nab and co have sorted out defaulters and have seen the market flatten for a while.
    Tough for the locals, but there are other lenders out there. And likely many still won't actually buy. It they want to they will. It's a nice place to live but being a working town everyone whinges about everything!

    A gladdy local told me he's seen some people make a lot of money, and a lot of people lose money. Boom and bust town
     
  5. HUGH72

    HUGH72 Well-Known Member

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    Might have been a wise policy 3-5 years ago when prices were going ballistic but after sharp falls it's probably a little late?
     
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  6. bob shovel

    bob shovel Well-Known Member

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    But then they wouldn't have gotten the big loans! Poor banks need to have their swimming pools filed with cash
    It now looks like they are doing something
     
  7. bob shovel

    bob shovel Well-Known Member

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  8. Special order

    Special order Well-Known Member

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    I remember on ss when Gladstone started going gangbusters and everyone thought the party was never going to end, on and on the thread went- was great watching real estate.com and seeing the prices shooting for the sky as well as the amazing yields people were lapping up. More exciting than Sydney IMO
     
  9. bob shovel

    bob shovel Well-Known Member

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    Yep that would have been more exciting that syd, everything was going up, new houses, rent, prop prices! And being a small defined area, everyone's a winner.... *!
     
  10. MGF

    MGF Well-Known Member

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    One of the fb comments someone had bought a block of land and two months after settlement tried to get a loan for their house and couldn't due to the new requirement. Now they have an empty block of land...

    That's pretty rough.
     
  11. Waterboy

    Waterboy Well-Known Member

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    It's the bank's money anyway, not theirs, so why do they think they got the right to complain?
     
  12. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I think banks are doing new buyers a favor by not lending them willy-nilly.