Demand for 100% home loans returns
Article by Mozo
Australian first-time home buyers are once again seeking to secure 100 per cent home loans as they struggle to get on the property ladder.
National mortgage broker Loan Market told Perth Now that 25 per cent of its total enquiries this month have come from people wanting no-deposit home loans, despite the fact that such products have "long been consigned to the lending museum".
"There remains strong interest in people looking to enter the property market via borrowing the whole cost of the property," said Loan Market chief operating officer Dean Rushton.
"But lending restrictions which require genuine savings contributions of around five per cent towards the property purchase means these people are not going to get a loan."
Prospective first-time buyers should look to compare home loans before weighing up all their options. Commenting on such options, Mr Ruston hailed lenders St George and Bank SA for recently agreeing to accept rent payments as a form of savings for a home deposit, describing the policy as "a significant breakthrough for first home buyers".
This article is brought to you by Mozo – Helping you compare home loans