Customers can expect to pay a
miniumm 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."
10% deposits now mortgage norm, originally published at Your Mortgage, has been republished here with permission.