Some blacklisted suburbs for banks

The Australian Financial Review report that AMP Bank also have a confidential black list of more than 140 suburbs where they are wary of lending for apartments based on growing concerns about oversupply of off-the-plan apartments and, in some areas, falling prices.

 

Hardly a confidential list given it was published in all major newspapers about 2 weeks ago. There's already an existing thread on this:
Apartment lender AMP ‘blacklists’ more than 140 suburbs

 

Good point. didn't see it on PC. I got it from Yardney.

 

Outside of that list - there are already lists for most lenders with excluded postcodes, property types etc. This is merely an extension of the existing restrictions to counter areas with potential oversupply of apartments. As I've said on here previously - any smart investor wouldn't put their money into those kinds of deals, so I think it's rational for the lenders to not want to either.

 

Thanks @Corey Batt Where can i source those lists you mention please?

 

@Corey Batt I will also be interested in getting the source so that i can see regularly which suburbs are IN/OUT

 

Yesterday's SMH also published a list of 14 suburbs which had zero mortgage arrears

 

The postcode lists most lenders follow are generally indicated by the mortgage insurers, which are freely available:

Genworth: Lenders Mortgage Insurance Security Location Guide - Genworth

QBE: Mortgage Insurance Calculator | LMI Calculator | Location Wizard | QBE LMI

If you're looking for a simple cheat sheet, they're not going to tell you which are 'banned' suburbs. Instead they give you the parameters where the insurers have limitations. The lower the LVR they'll cover is a good indicator that they feel it's a riskier location.

 

Thanks @Peter_Tersteeg

 

@Peter_Tersteeg i am not sure how to interpret this one. when i open QBE link it shows me location wizard but for every location it tells me 95% lending .. so not sure how this helps. see the picture


Can you share some details how to interpret this ?

 

@Ash that's simply indicating that QBE is willing to lend up to $900k at 95% for owner occupied property in Millers Point. It would suggest they're fairly comfortable with that price point in that location.

That said, for all I know every property in that location might be worth $1.2M+ so QBE might not be too helpful here.

Keep in mind these restrictions are on the basis of the mortgage insurers. Lenders might have their own risk rating in some areas as they've already got a high concentration of funding in some locations. They might not be willing to lend much more in those areas regardless of what the mortgage insurers say. This sort of info can be very difficult to get a hold of.