Citi Bank has black listed a range of Sydney suburbs where they have tightened their lending criteria for apartment buyers.

Recently Citi advised brokers of 34 suburbs in New South Wales where borrowers would face tougher hurdles to get a mortgage and have to jump through additional deposit hoops and face more stringent practices around cash out loans.

Buyers of new apartments, high-density apartments, and apartments bought through a property developer would be affected.

The maximum loan-to-value ratio was dropped to 65 per cent – meaning borrowers must come up with a deposit of 35 per cent in these locations.

While there were similar lists for suburbs in Melbourne and Brisbane, in general, these were close to the CBD

On the other hand, in Sydney areas on the list were as diverse as the inner suburb of Ultimo, to building boom locations of Ryde and Parramatta, and as far away as the Hills District’s Castle Hill and Kellyville.

And it is possible other banks will follow suit.

Last year National Australia Bank, ANZ Bank, and AMP Bank released their suburb black lists where they are wary of lending for apartments based on growing concerns about oversupply of off-the-plan apartments and, in some areas, falling prices.

Sydney suburbs on Citi’s radar

Sydney suburbs Postcode
Sydney 2000
Ultimo 2007
Alexandria 2015
Waterloo 2017
Rosebery 2018
Botany 2019
Mascot 2020
Bondi Junction 2022
Stanmore 2048
Greenwich 2065
Longueville 2066
Chatswood 2067
Ryde 2112
North Ryde 2113
West Ryde 2114
Epping 2121
Sydney Olympic Park 2127
Strathfield 2135
Enfield 2136
Concord 2137
Liberty Grove 2138
Homebush 2140
Granville 2142
Parramatta 2150
North Rocks 2151
Castle Hill 2154
Kellyville 2155
Canterbury 2193
Campsie 2194
Lakemba 2195
Marrickville 2204
Arncliffe 2205
Rockdale 2216
Hurstville 2220

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Kate Forbes
About Kate Forbes
Kate Forbes is a National Director Property Strategy at Metropole. She has 15 years of investment experience in financial markets in two continents, is qualified in multiple disciplines and is also a chartered financial analyst (CFA).
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