First home buyers still looking for 100% mortgages
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.
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