Searches for no deposit home loans by first time buyers have rocketed a massive 30 per cent since the start of the year, despite the product being terminated by most lenders, mortgage broker Loan Market has claimed.
Loan Market chief operating officer Dean Rushton said an examination of mortgage industry web traffic by Experian Hitwise uncovered a 28 per cent increase in searches containing the words ‘no deposit loans’ since January 1 this year.
Loan Market’s own website also experienced increased traffic regarding searches for no deposit loans, with inquiries into the product reaching a six month high this February.
Mr Rushton said this influx of inquiries revealed a strong desire to get into the property market even if first property buyers had to borrow the whole cost of the property.
“However 100 per cent home loans were justifiably the first products to go with the GFC and those inquiring about this product will not get a loan.
“Lending restrictions which require genuine savings contributions of around five per cent towards the property purchase means these people are just going to have to work on building up their home loan deposit,” he says.