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."
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
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.
We value your privacy and treat all your information seriously - you can check out