Australia’s property dead zones revealed: The suburbs which banks have blacklisted for home loans
- The suburbs which banks have blacklisted for home loans have been revealed
- So-called 'black list' was revealed by Digital Finance Analytics (DFA) this week
- Location is one factor banks are increasingly looking at when assessing loans
Australia's property dead zones which have been deemed the riskiest for home loans have been revealed as banks crack down on lending criteria.
The 'black list' of areas where location is deemed more of a liability to those applying for home loans was revealed by Digital Finance Analytics (DFA) this week.
Location is just one factor banks are increasingly looking at when assessing new home loans, and some areas were found to be a 'higher risk', ABC News reported.
Paddington and Milton (pictured), which share the postcode 4064, were Brisbane's worst areas for those looking to obtain finance to pay for their homes, with a score of 24.4
The crackdown comes in the wake of the Banking Royal Commission, where Commissioner Kenneth Hayne gave a scathing review of the nation's banks.
The data for the list was collected from criteria such as unsuccessful home loan applications, and recorded areas where finance was harder to obtain.
According to the data, Perth topped the charts as being the riskiest capital city for home loans, with a vast majority of regional suburbs also being blacklisted.
The riskiest suburbs in the country are Newdegate (6355), Bodallin (6424) and Pithara (6608) - all of which are located in regional WA and scored 46.1.
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Momentum Wealth team leader of finance Caylum Merrick said it hasn't been this difficult to borrow money for some time.
'It's a bit of a perfect storm … with the Banking Royal Commission, that's provided a whole other raft of challenges for borrowers regarding serviceability,' he said.
'The big thing is the way the banks are assessing loans at the moment is a lot different to what it was three to four years ago.'
The data also showed Brisbane and Adelaide closely follow Perth in terms of risk for borrowers, as both major cities have shown a recent decrease in property growth.
Paddington and Milton, which share the postcode 4064, were Brisbane's worst areas for those looking to obtain finance to pay for their homes, with a score of 24.4.
Glen Osmond, Glenunga, Mount Osmond, Myrtle Bank, St Georges, and Urrbrae, which share postcode 5064, were Adelaide's riskiest suburbs with a score of 29.2.
Likewise, Stepney, College Park, Saint Peters, Evandale, Hackney, Maylands, which share the postcode 5069, had an average risk sore of 29.2.
Sydney and Melbourne, which has previously led the property market, also saw an increase in risky suburbs due to the downturn in housing market growth.
Newport, in Sydney's northern beaches, was found to be the suburb which banks deem to have greatest risk for lenders, with a score of 24.2.
Evandale (pictured) is one of several suburbs in Adelaide that has been blacklisted for its high risk score of 29.2.
Similarly in Victoria, 3782, 3796, 3977, 3978 and 3980, which covers a range of suburbs, including Clyde, Cardinia and Cranbourne had the highest risk of 22.1.
While Hobart has shown property growth in recent years, the latest figures from CoreLogic and Real Estate Institute of Tasmania revealed the city's boom in over.
Hobart's riskiest suburbs were found to be Collinsvale and Glenlusk, which share the postcode 7012, and have an average risk score of 23.1.
In the Australian Capital Territory, the riskiest postcode was 2600, which includes Yarralumla, Capital Hill, Parkes, Russell, Canberra, Campbell, Deakin, and Barton.
The average risk score for suburbs that fall under the 2600 postcode was 11.5.
The riskiest suburbs in the country are Newdegate (6355), Bodallin (6424) and Pithara (pictured) 6608 - all of which are located in regional WA and scored 46.1
