10% deposits now mortgage norm

By |

By Robert Carry

Customers can expect to pay a minium 10% deposit on mortgages as both banks and independent lenders tighten lending restrictions in the wake of the global financial crisis, according to mortgage specialists Rams.

It is a major departure for lending institutions which were offering 100% mortgages less than two years ago.

According to The Sydney Morning Herald, Rams' chief executive Melos Sulicich said that borrowers are also now required to take out mortgage insurance on loans of less than 20%.

"People are being cautious about how much they are borrowing," added Sulcich. "LVRs of 100% were very common, but now that's around 90%. Lenders have tightened their criteria, but what's interesting is that doesn't appear to have dampened or reduced the demand."

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : mt gravatt , eagle vale , midland , balga , melton

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here