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'Restricted postcodes': NAB names suburbs where credit risk getting worse; hmm
Topic Started: 28 Sep 2015, 05:14 PM (2,021 Views)
Rastus2
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http://www.smh.com.au/business/banking-and-finance/restricted-postcodes-nab-names-suburbs-most-at-risk-of-mortgage-default-20150928-gjwfwa.html

'Restricted postcodes': NAB names suburbs where credit risk getting worse

September 28, 2015 - 3:07PM

Clancy Yeates

National Australia Bank has identified a long list of 34 Sydney postcodes where it believes there may be rising risk in the mortgage market, and where it will require home buyers to stump up a deposit of at least 20 per cent.

The lender has also red-flagged 22 post codes in Western Australia and 11 post codes in Queensland as even higher-risk areas. In these areas, it says there has been a "significant deterioration in credit risk".

In contrast, Victoria has just five postcodes flagged as at-risk by the bank.

In a note received by mortgage brokers last week, NAB listed more than 80 "restricted postcodes" across the country where it is capping the percentage of a property's purchase price it will lend, known as a loan-to-valuation ratio.

Within this group, NAB identified 40 highest-risk postcodes, which were dominated by mining areas in WA and Queensland.

Known as "Group A restricted postcodes" these are "areas where significant deterioration in credit risk has been observed", the bank said.

In these areas, NAB said it had introduced a cap of 70 per cent on loan-to-valuation ratios for new lending - meaning new borrowers will need a deposit of at least 30 per cent.

NAB also included a second group of "Group B" postcodes where it is eyeing future risks and capping LVRs for new lending at 80 per cent.

The second group of postcodes takes in "areas which are exhibiting characteristics which may indicate future deterioration in credit risk," the bank said.

Sydney highest risk

This "B" group was dominated by Sydney suburbs, which accounted for 34 of the 43 postcodes listed in this category.

It included a range of suburbs from across city, ranging from inner-city areas such as Glebe and Chippendale, to Campsie, Kingsgrove, Chatswood, Baulkham Hills and Cabramatta.

Five Melbourne suburbs were also included on the list of "Group B" areas, including the Melbourne CBD, St Kilda Road Central and Abbotsford.

NAB will also cap LVRs at 80 per cent in central business districts of Adelaide, Perth and Brisbane, the note says.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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vdmruss
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I looked at the list earlier today and there are really no surprises there.

The Hills District & Macquarie Park appear affluent if you were to look in from the outside as an observer. These are specifically the districts where the new, "higher-income" families decided to buy a premium suburban home at premium prices. I guarantee the Hills District contains the suburbs where the least paid off / highest total mortgages. It's where the struggling families that have the ability to live beyond their means are located.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
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The Whole Truth
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Rastus2
28 Sep 2015, 05:14 PM


The lender has also red-flagged 22 post codes in Western Australia and 11 post codes in Queensland as even higher-risk areas. In these areas, it says there has been a "significant deterioration in credit risk".
These will all be the mortgages they have securitized into covered bonds :lol
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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