australia's very own subprime crisis looming

According to analysis done by Rate City: "70% of the 2,800 home loan products on their database are now allowing deposits of 5% or less. This proportion was 86% in early 2008 and fell back to 49% in 2010."

Also, about one-third of first home buyers are taking on 40-year mortgages to make their repayments affordable.

These loans are available to FHBs so they can borrow up to 98% LVR.

So first home buyers who don't have enough deposit and don't have enough income for a standard loan are the one's taking on these risky loans. Unfortunately this is Australia's very own subprime crisis in the making.