National Australia Bank has identified a long list of 120 postcodes where it believes there may be rising risk in the mortgage market, and where it will require home buyers to stump up a deposit of as much as 30 per cent.
The Australian Financial Review reports that a confidential report listed dozens of suburbs have been added to the bank's list together with new measures intended to tighten scrutiny of household expenditure used to assess loan eligibility.
As you can see from the graphic below NAB's list is divided into A category postcodes, where loan-to-value ratios are capped at 70 per cent, and B category, where it is 80 per cent.
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Source: Australian Financial Review
Not surprisingly those wanting to by an inner city apartment in many suburbs in Brisbane, Sydney and Melbourne will now need a deposit of at least 20 per cent.