The postcodes apartment buyers should be wary of
Macquarie Bank has flagged risky postcodes where it plans to clamp down on apartment lending.
In a confidential memo obtained by the Australian Financial Review, the bank has told mortgage brokers it will restrict lending on high rise and high density apartments in up to 120 postcodes.
The bank told brokers that from 23 May it will lend a maximum of 70% loan to value ratio to a number of high density postcodes.
The new rules will also impose stricter conditions on borrowers looking to buy multiple properties on separate titles within a concentrated area, or using multiple properties as security, the AFR said.
"Independent employment and income verification checks, including phone calls to employers, are undertaken on a risk assessed basis. This means that any or all loan applications can be subjected to employment and income checks,” Macquarie head of sales and distribution Doug Lee told brokers.
The postcodes facing restrictions are in areas such as central Sydney, Melbourne’s Docklands and Southbank and more than 40 Queensland postcodes, many of which represent inner suburban and Gold Coast areas.
The memo follows a recent report from CoreLogic RP Data predicting an oversupply of apartment stock that could put settlements at risk. Property analysts have separately warned that off-the-plan buyers unable to obtain finance could be forced to sell their properties for “firesale” prices.
Some of the postcodes Macquarie has flagged
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