Home loan ratios wither during downturn
The Sunday Telegraph reports that a bevy of the country’s biggest banks have all announced that they are cutting their maximum loan to value from 95 per cent to 90 per cent.
"What you are seeing is a staged pullback by lenders from the market, to reduce risk," said Stuart Barton, a spokesperson for Challenger, one of the banks cutting loan ratios.
This would mean that first-home buyers looking to buy a $250,000 home would have to save up an extra $12,500 for a deposit, bringing the total to $25,000.
Such policies may make it even more important for first-home buyers to compare savings accounts to make their money work harder.
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