Home buyers continue to reap the benefits of banks improving their lending criteria, particularly for first-time buyers, says ooba Home Loans.
Banks are competing for customers by offering finance at more attractive terms, in spite of the current weak economic conditions ooba statistics show a 5% reduction in the average deposit banks want from the second quarter of 2018 to the Q2 2019.
In the same period, the average deposit for first-time buyers dropped by 25.2%.
Almost 60% of home loan applications in Q2 2019 were from buyers seeking a 100% loan, says Rhys Dyer, chief executive of ooba home loans.
ooba home loan’s approval rate for 100% bonds increased in Q2 2019 to almost 80%, compared to 74% in Q2 2018.
Some banks even offer extra finance to help with transfer costs.