How do I know which postcodes are acceptable for a home loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How do I know which postcodes are acceptable for a home loan?

Post by Otto Dargan »

Hi BootyOs. Welcome to the forums.

Each lender has their own postcode restrictions and there are a few that have a bigger appetite for category 3 locations and higher.

The reason Pepper Money are so conservative is that they're a specialist or non-conforming lender. Their lending policies are a lot more flexible than standard lending policies when it comes to considering borrowers with black marks on their credit file.

The trade-off is charging a risk-weighted interest rate and having stricter policies around high-risk locations.

Try our postcode calculator to get an idea of what most lenders consider to be low risk to high-risk locations.

Certain areas or postcodes are flagged as risky if the lender feels the price of the property is likely to fluctuate. This is especially true in the case of inner-city units, regional towns, or locations with "boom and bust" industries like mining and resources.

We know the policies of almost 40 different lenders, spanning specialist lenders to major lenders and banks.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will help you to get your home loan approved!

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I know which postcodes are acceptable for a home loan?

Post by Otto Dargan »

Hi BootyOs,

To give you an idea of the method to lenders' madness, smaller towns and remote locations tend to have slow growth and lower real estate sales.

Properties located in remote areas/small towns do not attract many buyers compared to an apartment in an urban area.

The banks usually divide locations according to population size, real estate values, the local economy and overall future growth of the area.

These are the main things the lenders are going to consider. And different banks have their own criteria or weightage for these factors.

One tool we use to stay one step ahead of the banks is to order multiplefree upfront valuations and go with the lender that will accept the location of the property you want to buy.

Call us on 1300 889 743 or fill our free assessment form to speak to a mortgage broker.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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