Major bank restricts lending in select postcodes

by Miklos Bolza26 Sep 2017
The Australia and New Zealand Banking Group (ANZ) has unveiled tighter lending policies for apartments in certain postcodes of Perth and Brisbane.

In a broker note sent out on Friday (22 September), the bank announced it would restrict owner occupier and investment lending to a maximum 80% LVR for all apartments within the following inner city Brisbane postcodes: 4000, 4006, 4010, 4011, 4014, 4102, and 4171.

ANZ will also restrict investment lending to a maximum 80% LVR for all apartments within the following inner city Perth postcodes: 6000, 6004, 6104, and 6151.

“This update for a handful of Brisbane and Perth locations is part of our ongoing efforts to ensure we are lending responsibly and in consideration of all our regulatory responsibilities,” an ANZ spokesperson told Australian Broker.

“We regularly look at a number of factors in relation to residential apartments to make sure we are meeting our responsibilities including supply and demand, rental yield, vacancy rates, and location.”

The changes will come into effect from 2 October and will impact all residential units including off-the-plan and non-standard small residential properties less than $3m. Standard residential homes including townhouses, granny flats and bungalows will not be affected by the change.

All applications submitted prior to 2 October will be assessed under ANZ’s previous policy. Application extensions must be completed by 6 November if brokers want the previous policy to apply.

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  • by Michael 26/09/2017 10:39:22 AM

    Absolutely confounding move, what ever you do as an organisation don't worry about the topped out markets of NSW and VIC that are nearly at or past peak levels. WA represent a fantastic buying opportunity with little downside.

  • by Simon 28/09/2017 9:03:51 AM

    Postcode restrictions have both positives and negatives from the broker perspective - the big positive is that by reducing the number of potential decline factors, brokers can maintain high level of confidence simply by avoiding ANZ in those areas. The negative of course is the customer now perhaps forced into using a less-than-ideal lender instead.

    The alternative - generally based on lender assessment of valuation (eg limited comparable sales, market and location risk ratings, etc) places a far higher level of uncertainty on approval - no broker wants to chase a "by exception" or "subject to case-by-case assessment" application unnecessarily.

    Clarity is good - even if perhaps misguided as Michael notes.