Yes that is right, due to the Credit Crunch
restricting the funds Banks have available,
they have now taken aim at the First Home Buyers.
First Home Buyers are facing high borrowing barriers
despite falling interest rates as the credit crisis
breaks loose on the nation’s real economy.
The Commonwealth Bank of Australia,
following ANZ Bank became the latest of the
primary Australian banks to announce
the end of no-deposit home loans last week.
Other mainstream lenders have “very minimal”
appetite for no-deposit lending,
with applications for low-deposit lending being
“looked at more critically than ever before”.
The Australian Banks have welcomed the
Government’s latest Home Loan scheme increases,
where up to $21,000 is now available from
the Australian Government
which is then topped up by the Victorian State Government
by between $3,000 and $8,000 depending on location
and whether it is newly constructed.
The Banks lower interest rates are available on
lending up to 95% of a home’s value.
Above 80%, borrowers need to cover
the cost of mortgage insurance,
which some of the Banks will add to the loan,
while others require the borrower to pay in full.
Practically all of the Banks have reduced their rates
by between 1.7% and 1.8%
following the Australian Reserve Banks
cutting of rates by 2% over the past 3 months.
First-time buyers will generally require
a minimum deposit of 5%.
The maximum loan to value ratio for an owner-occupied
residential property is now 95% and
90% for investment properties.
Tags: Bank Lending Policies
