Exorbitant deposit requirements imposed on Queenslanders seeking to buy a home in in rural and remote Queensland are stifling economic growth by locking prospective buyers out of the market.
Just having a rural or remote Queensland postcode is enough to drive up lending deposit requirements imposed by the major banks on prospective homeowners to 60 or 70 per cent, according to Flinders Shire Council Mayor Jane McNamara.
“Postcode discrimination as been a huge issue within our shire and the shires west of us,” she said.
“The major banks will not lend money without a huge deposit – and possibly will not even look at the project because it’s deemed to be in an area where they aren’t going to get a major return on their investment.”
Mayor McNamara said it was important for councils to continue pushing back against postcode discrimination within the banking sector.
“We need to have these people in good homes, able to bring new business to our areas,” she said.
“It’s a huge amount of money and it’s threatening the liveability of our shires.”
The solution
Support for local government to address post code discrimination by the banks in determining lending criteria in regional, rural and remote Queensland is just one of a suite of suggestions and solutions set to be proposed by councils at the Housing Summit hosted by Premier Annastacia Palaszczuk on 20 October.
Additional proposed solutions include:
- Addressing land tenure issues to unlock further land for development by giving councils the authority to determine land use that is in the best interest of their communities.
- Amending the First Home Owners’ Grant to allow it to be available for the purchase of any new dwelling, any existing dwelling and for the renovation and refurbishment of existing housing stock.
- Amending the State Government’s Queensland Housing Finance Loan terms to increase the income threshold to make it easier for homebuyers in regional, rural and remote communities to access the scheme and purchase a home.
- Providing catalytic infrastructure incentives to entice developers to the regions.
Watch: Flinders Shire Mayor Jane McNamara on the impact of postcode discrimination in her community.