Obtaining a home loan 'becoming easier'
Article by Mozo
Householders who are hoping to take their first step on to the property ladder could start to find it easier to get a larger loan.
This is according to Damian Smith, chairman of price comparison site RateCity, who explained to the Sydney Morning Herald that the level of money being offered by mortgage brokers at present has not been seen for two years.
The site's figures show that the number of mortgages with a 97 per cent loan-to-value (LVR) doubled from 2.5 to five per cent in January this year.
"Lenders are trying to kick-start growth in the mortgage market and more generous LVRs and lending criteria are the key tool they use," Mr Smith said.
People planning to buy a property in Brisbane or Perth could be interested in taking out home loans soon, as property analysis group SQM Research recently reported prices in these locations are expected to fall by 9.8 per cent and 9.6 per cent respectively this year.