First home buyers still looking for 100% mortgages

Tuesday 08 June 2010

Article by Mozo

Many prospective first home buyers are still struggling to find the high loan-to-value ratio (LVR) home loans they need to secure a property, it has been reported.

Research by the Sunday Telegraph confirmed a sharp drop in the number of high LVR mortgages – which refers to home loans offering more than 90 per cent of a property’s value.

This trend has made it particularly hard for Aussies to get onto the property ladder, heightening the need for first-time buyers to compare home loans in search of the most affordable options.

Loan Market chief executive Dean Rushton revealed: "We’re not able to take about 15 per cent of inquiries to the next level, because the borrowers are after those high loan-to-value ratio loans.

"We still get a significant number of inquiries for 100 per cent home loans, which don’t exist any more."

The new comes after a report by the Council of Australian Government’s Reform Council found last week that Perth has the lowest proportion of affordable homes in Australia.

This article is brought to you by Mozo – Helping you compare home loans ADNFCR-1761-ID-19825436-ADNFCR

Find great home loan deals

Which type of home loan would you like to compare?

Back to top