Bank's lending policy on these VIC suburbs

[cadence]

Hi guys

I'm doing some preliminary research into the Vic market.

For the following suburbs in and around the Melb city, does anyone know how much deposit the major banks require? 20% or 30%? Maybe brokers on ss might know?

Beacon Cove (0)
Melbourne (137)
Port Melbourne (26)
South Wharf (0)
Southbank (106)
St Kilda Road (0)
Victoria Harbour (0)
West Melbourne (22)

The apartments in those areas remind me of Alexandria, Waterloo, Zetland and CBD apartments in Sydney, where most major banks only lend 70% rather than 80%.

Thanks in advance.

 

[tobe]

Hi guys

I'm doing some preliminary research into the Vic market.

For the following suburbs in and around the Melb city, does anyone know how much deposit the major banks require? 20% or 30%? Maybe brokers on ss might know?

Beacon Cove (0)
Melbourne (137)
Port Melbourne (26)
South Wharf (0)
Southbank (106)
St Kilda Road (0)
Victoria Harbour (0)
West Melbourne (22)

The apartments in those areas remind me of Alexandria, Waterloo, Zetland and CBD apartments in Sydney, where most major banks only lend 70% rather than 80%.

Thanks in advance.

There isnt any hard and fast rules I'm afraid. Some lenders have restrictions on new apartments in diferent postcodes, some dont have restrictions at all, some have a list of specific developments they restrict lending to.

Are you looking at new apartments in these suburbs? OTP? Investment? Setlling shortly?

The other thing to be aware of is the rules can and do change.

 

[Greg Reid]

It will depend on the type of property and size more so than the suburb.
Also zoning and whether PPOR or IP. A major factor will be size of development, generally over 3 stories or > 30 apartments, it is regarded as high density and greater restrictions apply.

Once you get into MI territory, restrictions on post codes are tighter.

 

[Marty McDonald]

You can get 80% or higher in any inner suburb. Depends is the short answer.

 

[Jamie M]

Depends is the short answer.

This really is the only answer.

Further to what Tobe said - some lenders won't touch certain developments for whatever reason (usually due to current exposure) whilst others won't have the same concerns.

Some lenders, such as Westpac, are pretty transparent with this sort of stuff and provide a list of complexes that they won't fund against or restrict the LVR on.

Cheers

Jamie