Five postcode categories exist in Australia. Lenders use the categories to determine risk, including Mortgage Street. Risk is a broad term that describes factors that impact the desirability of a property, such as market conditions. An area’s category changes if homes are no longer selling quickly at the original asking price. This market condition indicates that something is causing buyers to look elsewhere. The five postcode categories are Metro Plus, Category 1, Category 2, Category 3, and No Category. High Density is the sixth unofficial category because it represents the riskiest areas. Metro Plus includes areas and properties that are the most desirable and pose a little financial risk. Category 1 poses a little risk but includes metro areas, capital cities, and regional centres where the population is dense. Category 2 moves into the mid-risk range and is a medium-sized real estate market. Category 3 features small towns that fluctuate in desirability. They are medium to high risk. No Category and High Density are the riskiest locations, including inner-city suburbs. Knowledge of postcode categories benefits brokers. Brokers can help their clients think like lenders. The Australian real estate market provides an opportunity in all market conditions. There are cases when the broker has to make a stronger case on behalf of their client. Historical data plays a role in an area’s classification. If the market in a Category 3 area shows positive changes, lenders adjust to the trend. The Categories impact the total amount based on a property’s value a lender is willing to finance. Brokers should be prepared to come up with additional financing options if 100% of the property’s value isn’t offered by a lender.