As bank tightens lendings, CQ couple buys home

WHEN Emerald's Chantal and Adam Bush heard that NAB had dropped its LVR (loan to value ratio) to 70% for many Central Queensland mining communities, they said it was a smart move for the bank.

The bank flagged suburbs nationally as Group A restricted postcodes where a credit risk was seen as high. Many mining towns dominate the list including Emerald, Blackwater, Springsure, Clermont and Aramac.

The Bush family knows all too well how excessive bank lending and low deposits have impacted the town - but the young family worked to make it a positive for themselves.

They purchased a repossessed house in Emerald for well below the market price - because they were the only people to show up to the auction.

After renting in Emerald but owning houses in Bundaberg, Mr and Mrs Bush said buying in Emerald during the downturn was a positive for them, and they said while they only needed a 20% deposit, having that raised to 30% would not have changed their decision.

Mr Bush said banks being stricter with lending was a positive for the whole community.

Mrs Bush said it was a double-edged sword for the couple, who bought their house because another family was unable to meet their repayments.

"I think it's obvious why there are so many repossession houses - people were getting away with almost no deposits," she said.

"We put in a terribly low offer on a house, and they accepted.

"It's good for a buyer, but not for a seller or a bank."

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