Major bank shuts door on foreign lending

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Major lender NAB has announced further restrictions on foreign lending, banning lending to foreign buyers who cannot provide evidence of local income.

NAB’s latest move extedns upon its previous announcement in May that it would only lend 60% of a property’s value to foreign buyers, down from 70% previously.

The latest announcement also means all four big banks have now have shut the door to foreign home buyers who do not have existing Australian income, The Australian has reported. 

A spokesperson for NAB told The Australian that the changes came about as a result of the bank’s constant review of its lending policies.

“NAB continually reviews its policies to ensure we continue to lend responsibly, and respond to changing market conditions and regulatory requirements.

“We recently made changes to our policy for lending to foreign applicants, which came into effect on Saturday, June 18.

“Under these changes, applicants will need to provide evidence of existing Australian income in order to be eligible for home lending application purposes.”

NAB has a home loan book of about $273bn as of March. However, the spokesman declined to comment to The Australian on the percentage of foreign buyers in its loan book.

“NAB has limited appetite for this segment (foreign applicants), which comprises only a small percentage of NAB’s lending book,” the spokesman said.

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