Wolli Creek and Zetland apartment projects on "bank's blacklist"
An undisclosed major bank has a blacklist of 6700 apartment projects across Australia.
The projects are where buyers are either refused loans or are offered reduced loan to value ratios (LVR).
The list has been obtained by The Australian Financial Review from the mortgage broker, Home Loan Experts. The newspaper article only pinpointed a handful of effected projects.
It reveals projects where buyers have either been denied loans or offered less funding are 19 Larkin Street in Camperdown in inner-city Sydney, Finbar's Aire apartments in West Perth and Meriton's developments on Main Beach on the Gold Coast and 1 Janoa Place in Chiswick, inner west Sydney.
Sydney-based Home Loan Experts noted "blacklisted" projects vary across the banks.
Areas which are consistently "blacklisted" however include Wolli Creek and Zetland (above) in inner south Sydney and the Brisbane CBD given a potential oversupply of new units or the bank reaching maximum exposure of loans on a project, managing director Otto Dargan said.
Earlier this year RiskWise declare Zetland as the riskiest off the plan suburb in 2018.
No Lending (Exposure Reached)
19 Larkin Street, Camperdown, NSW;
58 Cairds Avenue, Bankstown, NSW;
23 Mcintyre Street, Gordon, NSW;
10 Rosamond Road, Footscray, VIC.
Restricted Lending
29 Woodroffe Avenue, Main Beach, QLD, Maximum LVR: 70%;
1 Janoa Place, Chiswick, NSW, Maximum LVR: 80%;
Cromwell Road, South Yarra, VIC, LVR: 80%;
275-277 The Esplanade, Cairns North, QLD, LVR: 70%;
36 Griffith Street, New Farm, QLD, LVR: 90%;
659 Murray Street, West Perth, QLD, LVR: 80%
Serviced apartments or converted hotels are always considered as high-risk lending.
Assisting borrowers who have been rejected by banks is now a constant challenge, Dargan added.
