Bank's blacklist bans finance for 373 buildings
One of the big four banks maintains a list of residential buildings for which it bars or severely restricts intending purchasers from obtaining finance.
The blacklist includes 373 east coast residential buildings, most of which are serviced apartments, resorts or student accommodation.
The list also includes projects in the federal government's National Rental Affordability Scheme.
The list includes 100 projects – both off the plan and completed – in NSW, 146 projects in Victoria, and 127 in Queensland.
A development in Forster on the NSW mid-coast was tagged “No lending. Refer to credit hotline” on the list.
A Melbourne office conversion into one-bedroom units was deemed unsuitable by the bank ''due to poor amenity'' – the bedrooms have no windows.
A Queensland project was barred because ''there are concerns the developer may not be able to complete the project, which may impact on the saleability of existing homes''.
The list also includes a resort southeast of the Melbourne near Western Port Bay.
The list of ''unacceptable'' buildings was obtained by The Age property editor Simon Johanson, having been circulated by one of the big four banks to mortgage brokers in late 2010.
The newspaper report doesn’t identify the bank or any of the buildings.
The article notes a denial from the NAB, which says NAB did not keep a list of buildings that the bank will not finance. “We look at every inquiry on its merits and make a decision on a case-by-case basis,'' a bank spokesperson says.
A CBA spokeswoman said while the bank had a ''watch list'' of developments that required extra care for credit and valuations, it did not have a blacklist of buildings it would not finance.
Westpac and ANZ were approached by the newspaper for comment but did not respond. Property Observer has also approached Westpac and ANZ but has received no response from ANZ.
A spokeswoman for Westpac says the bank does not have a blacklist.
“We have policies and procedures in place to assess applicants and scenarios and make decisions on a case-by-case basis,” she says.
The list indicated the unnamed bank barred financing for all developments associated with the federal government's National Rental Affordability Scheme, an initiative designed to boost housing for low-income earners around the country.
It has long been known that lenders often decline to provide finance for buyers of apartment buildings once they reach pre-set exposure limits, commonly when 15% to 25% of the total number of apartments have already been financed by the lender.
