By Robert Carry

Customers can expect to pay a minium 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."