I recently received an email from one of the major banks advising that certain postcodes will now be treated with caution when this lender is approached for a home loan by investors. This particular lender gave details of the postcodes in question and changes to their list.
The lender in question explained that they have made changes to their approved postcode list “due to the continuing vunerability of local economies to fluctuations in mining investment and mining activity”. They reminded me that in January this year they reduced the maximum Loan to Value ratio (LVR) for investors for a number of postcodes to just 80% for investment properties. However, they will continue to lend up to 90% or 95% for owner-occupied lending. This is bound to have an impact on house prices in those suburbs surely.
It strikes me that if there genuinely is a question mark hanging over these particular suburbs should ANYONE be buying there, not simply investors. The good news for investors is that none of these suburbs were in South Australia.