The banks, says Rob Lawrence, National Manager for Rawson Finance, have received much favourable publicity on account of their willingness to once again give 100 percent bonds ? to select clients.

Just how "select" they have to be became clear recently when Lawrence revealed his company?s hit rate in this category: on average only three to five of applications for 100 percent bonds have proved successful.

In the past, said Lawrence, over 40 percent of applications for 100 percent bonds were successful.

"The public have to understand that a 100 percent bond involves a very high risk for the bank. With absolutely no deposit at stake, it is possible to see the monthly repayments as "rent" and the bondholder can walk away from his commitments all too easily ? and there have been many cases where this happened.

"With property no longer growing in value at the 20 to 30 percent per annum rate we saw in 2004 to 2007, the chances of the banks recovering a reasonable sum when bondholders default are greatly reduced, especially as the whole repossession process is costly and time consuming.

If at all possible, says Lawrence, the bond applicant should tailor his finances so as to be able to apply for a maximum 90 percent or smaller bond. In the 90 percent category, where clients can prove income and have clear credit records, Rawson Finance?s recent hit rate has been a high as 80 percent. But, says Lawrence, it is very important that clients disclose their full financial position to their bond originators as this will ensure that their application stands a good chance of succeeding.

Of concern, says Lawrence, is that the hype that has been created by the banks promoting 100 percent bonds has now created an expectation that every buyer who applies for a 100 percent bond will get one, whereas 95 percent will not.

"This has led to a lot of very disappointed prospective property owners, angry sellers and frustrated real estate personnel," said Lawrence.

"Because of this, at Rawsons," he added, "we sit with every buyer and where we feel he or she might not qualify for a 100 percent bond, we try and see whether a deposit can be raised. A 10 to 20 percent deposit will give them a far better chance of buying their dream home."