Home loan lending is certainly tightening up. Yesterday RAMS announced that they are removing their 100% home loan product for risk management purposes.

With now only one reputable lender offering 100% home loans, it is going to become more difficult for those with out a deposit to get a mortgage.

Banks and other lenders also require home buyers to have a minimum 3% to 5% deposit sourced from genuine savings for a minimum of 3 months. Genuine savings can be in the form of bank deposits, shares, equity in another property and for some lenders rent paid over a 12 month period.

Not all lenders require genuine savings for a successful application but similarly to 100% home loans we will see a shift towards most lenders require savings of some sort before they will accept a potential borrower.