There Is Some Pretty Bad News For NAB Customers
National Australia Bank is about to implement tougher lending conditions and will tighten its scrutiny of apartment lending as well as circulating a list of hundreds of suburbs where bigger deposits and new lending terms might apply.
The bank is changing its credit policies for off-the-plan purchases and will tighten scrutiny on self-employed borrows while refining its suitable securities to support loan applications.
A bank spokesman said "It will enable us to conduct a more detailed security risk assessment. It will help us better understand the types of properties (brokers') customers are purchasing."
Banks are under pressure to rein in their lending after an increase in investor borrowing suggested regulators are at risk of losing control of the property market.
Hundreds of suburbs in 60 postcodes across Western Australia, Queensland, South Australia, Northern Territory and Tasmania will now face deposits of a minimum of 30%.
The same may now happen for Docklands, Abbotsford, South Bank in Melbourne, while Sydney suburbs Barangaroo, Dawes Point and The Rocks.