Strict lending conditions stopping first-time buyers entering market

FIRST-time buyers are being prevented from taking advantage of plunging house prices because of stricter lending criteria by banks and falling incomes.

Banks are now requiring up to 20% deposits for mortgages with many asking potential homebuyers to prove that at least half of their deposit money has come from personal savings.

This is a far cry from a three years ago when many banks were offering potential buyers 100% mortgages, with no deposit required.