National Australia Bank has announced a new list of postcodes across Australia where it will restrict loan-to-valuation ratios due to concerns about increasing risk for mortgages in these areas.
If you recently missed the news, several suburbs in Sydney have now been limited to a maximum of an 80% lending ratio (that means your are required to have a minimum of a 20% deposit).
Affected areas range from the CBD itself, to trendy inner-city suburbs such as Glebe and Chippendale, and growth suburbs in the west like Parramatta, Granville and Lakemba.
Another group of suburbs, mainly in Western Australia, Queensland and Tasmania, where significant deterioration in credit risk had been observed, are now limited to a maximum lend of 70%, meaning a deposit of 30% would be required and the usual option of mortgage insurance is not available.
While this is not reflective of the wider market, and higher borrowing ratios are still available outside NAB, this could be a sign of things to come.
Affected areas in NSW by postcode include:
2000 - Sydney CBD
2008 - Chippendale, Darlington
2017 - Waterloo, Zetland
2019 - Banksmeadow, Botany
2037 - Forest Lodge, Glebe
2067 - Chatswood, Chatswood West
2112 - Denistone East, Putney, Ryde
2113 - East Ryde, Macquarie Park, North Ryde
2118 - Carlingford
2127 - Newington, Sydney Olympic Park, Wentworth Point
2140 - Homebush, Homebush West
2141 - Berala, Lidcombe, Rookwood
2142 - Camellia, Clyde, Granville, Holroyd, Rosehill, South Granville
2144 - Auburn
2146 - Toongabbie, Old Toongabbie
2150 - Harris Park, Parramatta
2151 - North Rocks, North Parramatta
2153 - Baulkham Hills, Bella Vista, Winston Hills
2166 - Cabramatta, Cabramatta West, Canley Vale, Canley Heights, Lansvale
2168 - Ashcroft, Busby, Cartwright, Green Valley etc.
2194 - Campsie
2195 - Lakemba, Wiley Park
2199 - Yagoona
2205 - Arncliffe, Turrella, Wolli Creek
2208 - Kingsgrove
2209 - Beverly Hills, Narwee
2210 - Lugarno, Peakhurst, Peakhurst Heights, Riverwood
2211 - Padstow, Padstow Heights
2220 - Hurstville, Hurstville Grove
2222 - Penshurst
2566 - Varroville, Bow Bowing, Minto, Minto Heights, Raby, St Andrews
2767 - Bungarribee, Doonside, Woodcroft
2768 - Glenwood, Parklea, Stanhope Gardens
2769 - The Ponds
Your purchase location and purchase reason (i.e. investment vs primary dwelling etc), have an impact on how lenders may view you. Prior to making any firm decisions, it is always good to speak with your trusted lending professional as they will be able to guide you and highlight the options that you will have available to borrow.