First-home buyers 'need a big deposit'

While base interest rates for home loans and credit cards have been cut for the first time in seven years, first-home buyers may still find it difficult to get a good deal.

Such is the claim of the Age, which has explained that the recent financial turmoil around the world has made it tough for many providers to continue offering competitive low-interest home loans.

In difficult times, the paper warned that first-home buyers will need to be able to put down a big deposit to get a good deal.

Furthermore, borrowers will need to provide proof that they can keep up with payments.

“Be prepared. A few years ago some lenders were relaxed about guidelines … now they’re not. You’ll need to show stable employment and proven income,” it warned.

Elsewhere, the Australian Associated Press has advised first-home buyers that the Reserve Bank of Australia may cut rates again in October.

As such, first-home buyers may want to be on the look out for competitive variable rate deals to make sure they don’t miss out on any future rate reductions.ADNFCR-1761-ID-18792260-ADNFCR