Mortgages more expensive
From October 1, banks will be required to keep the amount of new lending to borrowers with a deposit of less than 20 per cent to no more than 10 per cent of their total mortgage lending.
That means banks will have to turn away up to two-thirds of low-deposit applications they receive.
But even those able to squeeze across the line won't be counting their lucky stars. Whereas first-home buyers six months ago were able to negotiate on rates and get assistance with things such as legal fees, and in some cases cashback offers from banks wanting to capture business, new low-deposit borrowers will have to take whatever they're given.
Banks are already hiking fees for people with less equity in properties, even among existing customers.
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