A remote Queensland council is calling on the banks to reconsider what it claims are 'postcode bans' on borrowing for home loans.
Burke Shire Council chief executive officer Clare Keenan said the Queensland Government had granted the council approval to divest some of its housing, making the properties available for staff to purchase.
But Ms Keenan said the next hurdle was finding banks that would lend to residents as part of the council's initiative.
Burketown has a predominantly Indigenous population, and Ms Keenan said locals had been knocked back by one bank in particular before their financial status was even considered.
"We've got Westpac to the table … but unfortunately, as I found out, some of our staff who currently bank with other banks — in this case the Queensland Country Bank — when they approached their bank for a mortgage … they were simply told that because of their postcode that bank does not lend there," she said.
Queensland Country Bank (QCB) said in a statement that there was "no formal policy" that prohibited the bank from lending money to people who wanted to buy properties in Burketown.
QCB's head of marketing, Brett Maunder, said all applications were assessed based on individual circumstances.
"We regularly review our lending risk appetite, which includes consideration of restrictions in certain geographic locations based on local circumstances and economic conditions," he said.
"Our policy is broadly consistent across both residential and business lending."
Struggling to buy
Council employee and Burketown resident Moodoo Milne, who banks with QCB, is one of several staff keen to buy their first home, but says he has struggled to get a loan.
"I'm not going anywhere soon so why not own your own home in the place you want to live?" Mr Milne said.
"We're expecting a baby as well, so to own your own home would be good.
"I started working as a young teen and you work to buy stuff like this, and buy all your toys and whatever you need to buy.
"When you get knocked back it is a bit of a kick in the guts."
Mr Milne's partner, Trudy Hancock, said a QCB employee told her "the bank doesn't service Burketown for home loans".
"It's a little bit confusing as we've rung up and asked if we can put in an application for a home loan," Ms Hancock said.
"They [QCB] just come back and said 'no' straight away, without looking into our bank accounts.
"We've been trying to put away as much as possible because we knew the houses were coming up for sale … plus to be financially stable for me finishing work [when the baby comes]."
