NAB wants 30% deposit for home loans in 'risky' Gladstone
NATIONAL Australia Bank is the second major bank to declare Gladstone a risky market for lending.
The NAB has revealed Gladstone made its list of 40 'Group A restricted postcodes' where buyers will need a 30% deposit to secure a loan.
It lumps Gladstone among a list of Queensland mining towns such as Emerald, Blackwater, Mackay and Moranbah now known as "areas where significant deterioration in credit risk has been observed".
The NAB follows ANZ bank which, in July this year, also changed its policy; demanding all buyers cough up a 30% deposit for a mortgage through ANZ.
At the time an ANZ spokesperson said the changes reflected the localised downturn in Gladstone because it was dependent on the mining sector.
However Gladstone Ray White director Andrew Allen said it was wrong for banks to classify Gladstone as a mining town and any policy restricting lending was three years too late.
"This policy change should have been introduced three years ago when people were just walking in the doors and being handed money," Mr Allen said.
"That's when Gladstone was a high risk area for lending.
"This decision isn't saying Gladstone is a high risk market to buy in - It means it is high risk for the banks because people will be struggling to make their mortgage repayments now.
"NAB have done this at a time when there really is no risk because property prices can't fall any further."