Apartment buyers in more than 87 suburbs across Australia will find it harder to get a Citi mortgage given tightened lending criteria.

In a note sent to mortgage brokers at the end of July, Citi pinpointed 34 Sydney postcodes, 27 in Melbourne and 12 in Queensland where borrowers would have higher deposit requirements.

Citi has imposed new lending conditions fearing high density “blackspots” face a surge in approvals. Buyers in nearly 90 postcodes will require deposits of up to 35 per cent.

The global bank only has a small mortgage book in Australia but does have a high profile with offshore Asian investors.

Citi’s analysts are warning the 20 per cent rise in private apartment approvals during June will increase the threat of over-supply as construction is completed.

At Strategic Buyers Agents, we are favouring home buying over apartments in the present property climate, and prefer to buy apartments for home occupiers only.