But mortgage broker Loan Market says these potential borrowers are likely be unsuccessful and will need to show they can save for a deposit.

Loan Market chief operating officer Dean Rushton says there is still a huge amount of demand from people wanting to enter the housing market despite the end of the government's expanded grant.

But those looking for a 100 per cent loan will find it difficult.

"Tighter lending restrictions which require genuine savings contributions of around five per cent towards the property purchase means most are unlikely to get past first base," Mr Ruston said.

"The major lenders have no appetite for this type of lending and there is little room to move for applicants who do not fit the box."

He said early last year banks reduced their maximum loan to valuation ratios (LVRs) to as low as 85 per cent in response to the global financial crisis, making it much more difficult for first-time buyers.

Buyers had been able to use the boosted First Home Owners Grant as a contribution to their deposit but this had become more difficult since the concession returned to its original level of $7000 in January.

Mr Rushton said family equity options, where parents or another immediate family member can help with loan servicing and security support, were still available to help first home buyers entering the market.

"Unfortunately, a lot of people have lost the knack of saving money, which makes it difficult if you want to find the finance to get into the residential property market at the moment," he said.

"The situation is unlikely to change in the near future."