Could mortgage approval rates decline significantly?

There has been much speculation of late that confidence in the housing market is so low that it may not be possible for many young families and prospective homeowners to archive their dream of home ownership as mortgage approval rates plummet and decline.

Many are relying on a wait and see approach for the housing market but some might find the door firmly shut in their face as they do try and get a mortgage approved as banks and lenders aim to cut down on lending especially first time buyers who are now expected to stump up to 40% of their mortgage in cash just to get their mortgage approved.