‘A hard no’: Banks use secret data to ban home loans

Aussie banks are quietly black-listing whole suburbs from home loans, with buyers blindsided by secret postcode bans that can kill a property deal stone dead. And in the middle of a housing crisis, the crackdown risks driving even more investors out of the market and piling fresh pressure on already stretched rents. It sounds unbelievable: you find a bargain property, the figures stack up, your income is solid and your deposit is ready to go – only to be told the bank will not touch it because the suburb is considered too risky. That is exactly what happened to seasoned property investor Charles Corby, who says his latest purchase was knocked back not because of his finances, but because lenders deemed the postcode a crime red flag. MORE NEWS Labor’s fix for housing could wipe 10,700 homes, cut jobs ‘Don’t buy’: Agent warns buyers of $50k hidden home defect $200 rent rise forces student into his car Mr Corby had applied for an investment loan to buy a South Hedland property in WA, for about $305,000 with a 10 per cent deposit. On paper, he believed it was a strong deal. Mr Corby had hoped to buy this three-bedroom renovator for $305,000 but the banks had other ideas. Source: Reales...