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St George Bank Postcode ?

Discussion in 'Property Finance' started by mja, 28th Jun, 2015.

  1. mja

    mja Well-Known Member

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    18th Jun, 2015
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    Location:
    Sydney
    Hi all,

    Does anyone have a link/PDF handy for what St George classes risk in different postcodes?
     
  2. Watson1

    Watson1 Well-Known Member

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    24th Jun, 2015
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    Location:
    Melbourne
    Hard to say as STG have their security development register which lists all the developments they don't lend or at a reduced LVR for apartments. They do have a few postcodes which they consider high density and will lend at a reduced LVR and take less rental income.

    List is huge so you are probably best off stating what area/development you are interested in.

    STG have one of the most extensive postcode/development restrictions in terms of lenders. Worse case scenario if STG wont lend, you can always look at other lenders such as ANZ who will pretty much accept anything.
     
  3. Chilliblue

    Chilliblue Well-Known Member

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    Pricefinder may be an indicator
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Location:
    Melbourne, Nationwide
    I don't think you're going to find any list that really gives you the info you want in the way that you want it. Risk tolerance isn't something the banks definitively talk about and it's something they can change at a whim without advertising the change. It's very hard for an outsider to quanitfy and an outsider is anyone who's not directly in a lenders 'risk policy' team - brokers don't know, neither do branch staff, credit assessors, etc. Risk isn't something most people you'll encounter are given information on, we can only get a gut feel for it.

    Generally you'll find that the CBD of major capital cities is off limits above 80%, with some lenders even 70%. This may include postcodes immediately adjacent to the CBD. You'll also find restrictions on rural locations, especially with small populations below 10,000 to 20,000.

    The CBA tells us they'll fund any LVR in any postcode. Whilst technically true, they do put a very high risk rating on some areas. This won't kill the deal on its own, but the cumulative effect of this and one or two other things just might.

    If you go to the Genworth site www.genworth.com.au, you can find a 'security location guide'. This will give you some guidelines and you can enter the postcode of a property to get some broad parameters. Keep in mind that Genworth no longer underwrites St George (Westpac) and even if they did, it's only one piece in the puzzle.