Banks raise the bar on loans

The falling property market and the tightening of bank security levels is affecting those people working in industries that the banks consider to be high risk.

Commercial real estate agent Peter Taylor is being sued by the vendor of an expensive house he successfully bid for at auction last September.

Taylor's bank, the Commonwealth, has insisted on additional levels of security over his old property and over the property of an elderly couple related to Taylor because it ranks his industry – commercial real estate – as high risk in the current economic climate.

Taylor did not agree to the additional securities and the sale of the house was delayed by many months.

Source: Sydney Morning Herald