Homebuyers 'will struggle to get a 100% mortgage'

Thursday 18 February 2010

Article by Mozo

Bank customers will struggle to secure 100 per cent home loans, an industry group has said.

Mortgage broker Loan Market said that most lenders will require borrowers to show that they can save for a deposit, the Australian Associated Press (AAP) reported.

The news provider noted that inquiries about 100 per cent home loans have risen by 250 per cent since the federal government ended its generous first home owners grant at the end of last year.

Loan Market chief operating officer Dean Rushton said that many people still want to enter the property market and are requesting more generous mortgage deals as a result.

However, he told the AAP: "The major lenders have no appetite for this type of lending and there is little room to move for applicants who do not fit the box."

The comments may encourage Aussies to compare home loans in search of the best borrowing terms. Earlier this month, the Herald Sun reported that a range of smaller lenders are set to take on the major banks in the home loan market.

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