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ANZ’s tighter lending rules in Brisbane, will hurt homeowners

Brisbane lending restrictions by madeleine hicks

The ANZ has told its brokers to tighten lending restrictions in 7 postcodes in Brisbane, where buyers will now need a 20 per cent deposit before they can borrow.

The bank said it would restrict owner-occupier and investment lending to a maximum of 80 per cent of the value of apartments in seven postcodes across Brisbane — including the trendy inner-city Spring Hill, Petrie Terrace and the CBD, where new apartment blocks have sprung up.

Other suburbs affected include Fortitude Valley, Bowen Hills, Newstead, Nudgee, Banyo, Virginia, Woolloongabba, Albion, and upmarket suburbs like Bulimba and Hawthorne.

ANZ has also released guidance to brokers on how best to accurately assess clients' financial situation, including keeping a record of their conversations.brisbane lending restrictions in place

An ANZ spokesman said the update was for a handful of Brisbane locations and was "part of our ongoing efforts to ensure we are lending responsibly and in consideration of all our regulatory responsibilities".

"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 spokesman said.

One of Brisbane's leading real estate agents, Madeleine Hicks said that "it is quite disturbing for people that are wanting to sell their homes if they are in those selected suburbs.  It has just got a whole lot harder."

"Potential purchasers will find it harder to get a loan in these suburbs, now meaning they may just by pass these areas"

"The suburbs that have had the restrictions put in place are those with a large number of unit developments going up.  It is important for council to balance the needs of developers and the existing residents when they consider new building applications." Hicks said.

List of suburbs affected
4000Brisbane CBD, Spring Hill, Petrie Terrace
4006Fortitude Valley, Bowen Hills, Herston, Newstead
4010Albion
4011Clayfield, Hendra
4014Banyo, Nudgee, Virginia
4102Dutton Park, Woolloongabba
4171Hawthorne, Bulimba, Balmoral
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