Postcode restrictions

What are location restrictions?

Almost all banks and major lenders in Australia have a location guide or postcode list that determines their maximum loan amount and lending policy for each location in Australia. Locations are put into categories based on their population, real estate values, local economy and likely future of the area. You can use our Postcode Location Guide to find out which category your property is in.

One of our lenders has no postcode restrictions Australia wide for both normal and low doc loans.

How much can you borrow?

First home buyer: 95% of the property value (restrictions apply).

Investor: 95% of the property value.

Low doc: 80% of the property value.

Discounts: Competitive professional package and basic loan discounts are available.

Note: The majority of lenders will lend up to 90% of the property value for houses that are in towns with more than 10,000 people, however many limit the loan amount for smaller towns or outlying suburbs. Low doc loans are often restricted to even larger towns of 15,000 or 20,000 people. One of our lenders will accept any property under 50 hectares no matter the town, suburb, location or postcode.

Why are the banks so conservative?

Smaller towns and remote locations tend to have lower real estate sales. In the event that you want to sell your property you may have to wait several months or even years to find a buyer. This is particularly true if the local economy is suffering due to a drought or local industry closures.

Because of this banks view smaller towns and remote areas as a higher risk and so restrict the amount you can borrow.