Home News One in three mortgage enquiries not meeting criteria

One in three mortgage enquiries not meeting criteria

Font size :

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.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords