December 04, 2017
Suburb blacklist? Not the TV show exactly but yes banks are now blacklisting suburbs that you may be looking to purchase in.
Recently the Commonwealth Bank announced a number of changes to its lending policy and following both ANZ & AMP CBA have listed a number of suburbs that will have restricted lending policies in a bid to "ensure the long-term sustainability of the property market".
The changes in lending criteria is in many ways an attempt to protect both Mortgagee and Mortgagor following ongoing public warnings from The Australian Prudential Regulation ‘amid evidence that many borrowers are under increasing financial stress despite interest rates being at record lows’.
We could see further lending policy changes following reports that both residential and investment banks across Australia have qualified and approved about $500 billion in 'liar loans'. Where information is falsified on applications to improve the borrower's ability to service the loan amount.
There appears to be lots of changes in a volatile market, however all banks are not the same and common sense lending still prevails.
If you have any concerns, as always it is important to stay up to date and in touch with your mortgage broker.