 No-deposit home loans under threat
No-deposit home loans are becoming less attractive to lenders, who are pulling many products from the marketplace as they become cautious about lending in the global credit crisis.
First-home buyers and investors are likely to be the hardest hit, as requirements for the traditional 5-20 per cent deposit comes back to the market.
"I think we will see a few months down the line very few no-deposit products will be available," said financial analyst Frank Lopez. "It's what we are seeing in other markets such as Europe."
The Commonwealth Bank and ANZ Bank have both announced plans to stop offering their 100% home loans, instead now offering up to 95 per cent of the value of a property, requiring borrowers to save at least a 5% deposit.
But research figures from InfoChoice show that 145 lending institutions offer 100 per cent home loans subject to mortgage insurance. Westpac, St George and NAB say they have no immediate plans to withdraw their 100 per cent home loans.
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