Lending caps per suburb

Do banks have lending caps for suburbs?

A friend applied for a loan and the bank said they had reached the lending cap for that suburb? Is this real or just a fancy way of refusing the loan?

Cheers

 

Care to share what suburb?
Unit or House?

 

Unit in Harris Park.

 

Quick search shows 87% of dwellings in this suburb are flats/units which is why maybe the banks are over exposed in that property type within Harris Park,..

 

Further skewing that data set for Harris Park is the fact that it is a tiny tiny suburb. This means that geographically there is no room for houses since most were already bulldozed and developed into towers or at minimum, 3-floor-walk-ups.

But this has aroused my curiousity; if a suburb like Harris Park with its 87% apartment composition means lenders wont lend there for an apartment purchase, how are ANY buyers who use mortgages to buy (i.e., MOST property buyers, right?) going to buy ANY of the units in (for example) Harris Park?

Ergo, from here, one can only imagine that sales prices for apartments in suburbs that are over this supposed '80% apartment composition threshold' will reduce in asking price again, again, and again, since they'll find it hard to find buyers, no?

This all sounds pretty symtomatic of oversupply IMHO.

Anyone know where I can get a list of postcodes nationally that feature 80%+ apartment composition? I'm now curious to see just how many could face the same financing 'fate'.

 

If one lender is overexposed it means another is underexposed. Your friend should find a different lender that's not overexposed to Harris Park.

 

Don't understand why they rate it so poorly. They obviously haven't been to all the curry restaurants.

Some of them serve free shots ...

Gunman fires shot through front window of Billu's Indian restaurant, Harris Park