Gladstone property market correction catches lenders' eye
IN Gladstone the property market remains quite volatile, according to mortgage broker Greg Hill.
Mr Hill said over the past year there had been a correction in property values and, while the market was now showing some early signs of stabilisation, this had not gone unnoticed by the lenders.
"The ANZ in particular has taken a conservative position in funding to towns like Gladstone, and many other smaller towns, they have classified, for want of a better word, as 'mining towns'," Mr Hill said.
"They placed a ceiling of 70% of value or purchase price for lending against homes within restricted postcodes.
"The ANZ don't stand alone as Gladstone does also appear on restricted postcode lists with a number of other lenders, and changing policies across the lenders brought on by this increased scrutiny of Australian Prudential Regulation Authority is not simply limited to lending limits.
"Investment lending is under the spotlight and in an effort to curb the growth, lenders may have increased interest rates to investors, reduced what they will lend and introduced tighter assessments on the client's ability to service the debt.
Commenting on the news online last night, Sarah Holzheimer wrote: "That's why we moved our investment property loans from ANZ.
"Since doing so, we have purchased another property, in the middle of buying another one and will finalise another transaction by the end of this calendar year.
"We couldn't do that with ANZ, so we refinanced and we've been moving forward ever since."
With the average house price in Gladstone sitting at $346,000, the average home buyer would have to find a deposit of $103,800.
Other towns where the classification was changed include Roma, Miles, Chinchilla, Blackwater, Rolleston, Cracow and Dysart.