Banks say they are still lending to Katherine

A Katherine resident claimed he was denied a home loan because of the PFAS contamination scandal. Photo: Erin Jonasson
A Katherine resident claimed he was denied a home loan because of the PFAS contamination scandal. Photo: Erin Jonasson

A Katherine resident has claimed his home loan was knocked back by Macquarie Bank due to chemical contamination issues in Katherine. 

A spokeswoman from Macquarie Bank denied this. 

“That is not factually correct, we have not rejected any applications in Katherine due to contamination,” the spokeswoman said today. 

“An independent valuer has noted chemical contamination issues which is what we would expect, that is pretty standard. That would not necessarily impact a loan, we have not received.”

The Katherine resident, who asked for his name to remain anonymous, said he was applying for the loan through a brokers agency. 

The resident said he was told by the agency that he was not a “safe bet” because he lived in a contaminated town. 

A spokeswoman from the Australian Bank Association said she could not comment on the issue because every bank has their own policies on who they do and do not lend to.