By Robert Carry
One in three mortgage enquiries will not fit the current lending criteria, mortgage broker firm the Loan Market Group has claimed.
The firm's chief operating officer Dean Rushton said tighter lending rules which requires genuine savings contributions of around 5% towards the property purchase was creating major hurdles for new buyers.
He said other loan applicants who passed all the lending criteria were being rejected because they had few assets.
"The major lenders are in a competitive position where they can pick and chose who they want to lend money to and there is little room to move for applicants who do not fit the box," said Rushton. "We are finding that 30 per cent of first time buyers who enquire about housing finance won't even get past first base."
Rushton said buyers had been able to use the boosted First Home Owners Grant as a contributor to their deposit but this had become more difficult since the concession was partly reduced on September 30.
Banks earlier this year reduced their maximum loan to valuation ratio's (LVR's) to as low as 90 per cent in response to the global financial crisis. But Mr Rushton said family equity options were still available to help first home buyers and families entering the residential real estate market.
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 :
st kilda west
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