Powered by MOMENTUM MEDIA

No deposit loans remain unlikely

By webmaster 28 October 2011 | 1 minute read

First time buyers continue to seek out 100 per cent home loans, despite few lenders providing this product.

According to new data from Loan Market Group, 7 per cent of the brokerage’s total enquiries during October, 2011, came from people wanting no deposit home loans.

“There remains strong interest from people who want to enter the real estate market and borrow the entire cost of the property,” Loan Market Group chief operating officer Dean Rushton said.

“But the modern day lending reality is that if you want to obtain housing finance you have to save for a deposit,” he said.

“Lending restrictions require genuine savings contributions of around 5 per cent towards the property purchase.

Advertisement
Advertisement

“A deposit of this size demonstrates to the lender that you have the capacity to save money and budget.

“It also gets you started on the front foot in terms of already having some of the market value of your property paid off.”

Mr Rushton said would-be buyers were best off to develop a savings plan early to build a home deposit.

No deposit loans remain unlikely
default
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.